Congressmen Panetta, Beyer Release Proposal to Improve the Paycheck Protection Program

Press Release

Today, Congressman Jimmy Panetta (CA-20) and Congressman Don Beyer (VA-08) unveiled a proposal to improve the newly created Paycheck Protection Program (PPP).

The PPP, created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides forgivable loans to cover up to eight weeks of payroll, rent, utilities, and mortgage interest. However, structural and regulatory issues have hobbled the program, making it difficult for many small businesses, especially in the hospitality industry, to use the loans effectively. Other small businesses have been unable to secure loans in the first place, while larger, publicly traded companies have received large loans.

"Although the Paycheck Protection Program has provided some much needed relief for many small businesses on the Central Coast, I have heard repeatedly that the PPP needs clearer rules and structural improvements so that employers can rehire employees without worrying about losing their loan forgiveness," said Congressman Panetta. "That's why we are proposing this legislation to ensure small businesses are not crowded out by bigger businesses and provide more clarity and flexibility for loan forgiveness and payroll requirements. The Paycheck Protection Program should not be an additional source of anxiety but, rather, a lifeline to small businesses."

"The Paycheck Protection Program was designed to be a lifesaver for American workers, but too many small businesses have not received the support they were promised. Our approach would greatly improve PPP and make it work better and more fairly for small businesses, targeting the funding to those who need it most. It would also give small businesses the time and flexibility they need to make sure they can survive this crisis and save as many jobs as possible. I thank Congressman Panetta for his leadership," said Congressman Beyer.

The Paycheck Protection Program Improvement Proposal:

Provides dedicated funding for the smallest businesses and prevents publicly traded companies from receiving PPP funding
Provides more clarity and flexibility for loan forgiveness and payroll requirements
Allows small businesses to spread out payroll payments over a longer period of time and covers payroll paid before the loan was received

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