Texas Insider Report: WASHINGTON, D.C. – Rep. Pete Olson (TX-22) acted to force a House vote to extend the much needed Paycheck Protection Program (PPP) that has helped companies stay open and save critically needed jobs. Olson signed H.Res.1116, a discharge petition that would trigger a House vote on H.R. 8265, the Paycheck Protection Program Extension Act.
The measure is an attempt to force House Speaker Nancy Pelosi (D-CA) to act immediately to provide COVID-19 relief to the American people. The bill would extend the Paycheck Protection Program through the end of 2020. A discharge petition is a tool that can force a vote on a bill. It requires 218 House members to sign on to trigger a vote.
“House Democrats have drawn a line in the sand refusing to provide targeted relief to businesses across America unless Republicans agree to their costly spending binge,” Olson said. “This petition is a needed to tool to end the political stalemate and get help to those who need it. Helping Americans who face businesses going under or losing their job should be a bipartisan priority. It’s shameful that Speaker Pelosi is willing to let folks suffer instead of working with us to deliver needed help. I urge my Democratic colleagues to think about the American people, sign the petition and bring this bill up for a vote.”
Background on H.R. 8265, the Paycheck Protection Program Extension Act:
- Opens up $135 billion in unspent PPP funds
- Extends the PPP program through the end of 2020
- No new funding is in this bill
- Permits businesses to apply for second loans
- To receive a second loan, businesses cannot have more than 300 employees and must show a quarter reduction in gross revenues
- Gross revenues are determined by the business comparing either their first or second quarter of 2020 to the same quarter of 2019
- Maximum loans will be dropped to $2 million
- Includes restrictions for those applying based on revenue and size
- Businesses cannot go over $10 million on their first two PPP loans
- Keeps the 60/40 requirements but extends eligible expenses to include covered operations expenditures, property damage costs, covered supplier costs and Personal Protective Equipment (PPE)
- Expands PPP eligibility to include:
- Certain 501(c)(6) organizations with 300 or less employees
- Nonprofit organizations that help people with developmental disabilities
- Sets aside $25 billion for entities that have ten or less employees as well as $10 billion for community lender loans
- Expands safe harbor for lenders and simplifies the forgiveness process
- Allows businesses to change the loan amount if they have received a larger loan before guidance
