House to vote on changes to small business pandemic aid program

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The legislation — titled the Paycheck Protection Program Flexibility Act — was introduced by Republican Rep. Chip Roy of Texas and Democratic Rep. Dean Phillips of Minnesota. It is intended to make loans more accessible under the program by making its terms of use more flexible.The legislation would give small businesses more time to use emergency loans under the program by extending the eight-week period in which they must use the money to qualify for loan forgiveness to 24 weeks.The bill would also give small businesses more flexibility by changing the so-called 75/25 rule, which requires recipients of funds under the program to use three-quarters of the money for payroll costs and limit other costs to no more than 25% in order to be eligible for loan forgiveness. The new ratio would be at least 60% on payroll and no more than 40% on other costs.The legislation would also allow businesses that receive loan forgiveness under the program to defer payroll taxes. The push to make fixes to the loan program comes as Democrats and Republicans have yet to reach agreement over how to move forward with a new, sweeping coronavirus relief package. But sponsors of the bill argue that fixes to …

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