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House Likely to Stick With Longer PPP Forgiveness Period

Posted on May 27, 2020

The House will take up legislation to further expand the Paycheck Protection Program as discussions with the Senate on the length of the forgiveness period continue.

The bipartisan Paycheck Protection Program Flexibility Act of 2020 (H.R. 6886) will be on the House floor May 28, according to House Majority Leader Steny H. Hoyer, D-Md., despite the bill’s differences with a similar proposal in the Senate.

Hoyer told reporters in a press call May 26 that he had spoken with Senate Finance Committee member Benjamin L. Cardin, D-Md., to discuss how the two chambers plan to reconcile some of the differences. The House bill, introduced by Reps. Dean Phillips, D-Minn., and Chip Roy, R-Texas, would extend the time businesses have to use the loan money and still qualify for forgiveness from eight to 24 weeks. 

The Senate’s version, which Cardin, along with Sens. Marco Rubio, R-Fla.; Susan M. Collins, R-Maine; and Jeanne Shaheen, D-N.H., tried to pass by unanimous consent May 21, would extend the period in which businesses are expected to spend the loan aid to just 16 weeks.

The Senate’s version also allows businesses to use PPP funding to purchase personal protective equipment for their employees. Despite the small differences in the bills, the House is expected to forge ahead with its own version. Hoyer told reporters that Cardin believes the House version is an “acceptable alternative.”

“I hope Mr. Rubio would [believe that] as well,” Hoyer added, urging the Senate to move quickly to pass the expansion.

Hoyer dismissed the idea of carving out proposals in the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act (H.R. 6800) to be separately voted on in the House, such as aid for states.

The House is also expected to vote on the Small Business Transparency and Reporting for the Underbanked and Taxpayers at Home (TRUTH) Act (H.R. 6782). The measure, also introduced by Phillips, directs the Small Business Administration to publicly disclose details on the loan process. But unlike H.R. 6886, the TRUTH Act has little support among Republicans, with Rep. Brian K. Fitzpatrick of Pennsylvania its only Republican cosponsor.

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