News from Representative Larson

Dear Friends, 

The economic devastation caused by COVID-19 has impacted small businesses in Connecticut. Our nation has reached levels of unemployment not seen since the Great Depression and estimates show the impact of this crisis will span over the next decade.  

Congress created the Paycheck Protection Program (PPP) to provide small businesses with relief and help them keep employees on the payroll during the pandemic. This program has already provided over $6.5 billion in funds to businesses in the State of Connecticut to help them through this crisis. However, I have heard from many businesses in the First District that the PPP guidelines were too restrictive. 

That is why, on May 28th, I voted for the Paycheck Protection Program Flexibility Act. This bipartisan legislation, which was signed into law on June 4th, makes it easier for small businesses to access this critical relief to help them weather this storm.   Funding for the program is still available, and applications are open until June 30, 2020.  

How does the Paycheck Protection Program Flexibility Act make it easier to access loan relief?

  • It extends the cover loan forgiveness period for expenses from 8 weeks to to 24 weeks, including the rehiring deadline; 
  • It increases the current limitation on the use of loan proceeds for nonpayroll expenses from 25 percent to 40 percent; 
  • It extends the program from June 30 to December 31, 2020; 
  • It extends loan terms from two years to five years; and 
  • It ensures full access to CARES Act payroll tax deferral for businesses that take PPP loans.

Please check the Small Business Administration’s (SBA) website here for forthcoming guidance on how to apply under the updated rules.  

Additionally, it was announced that applications for Economic Injury Disaster Loans (EIDL) reopened today. These loans provide an emergency advance of up to $10,000 to small businesses and agricultural businesses by COVID-19. The advance does not need to be repaid, and may be used to retain employees on payroll, cover sick leave, meet increased production cost due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. Please visit the SBA’s website here for more information. 

For additional information, please visit my COVID-19 resource page here. And, as always, please don’t hesitate to contact me via email here if you have any questions.

Regards,
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John B. Larson
Member of Congress

 

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