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Dean’s Paycheck Protection Program Flexibility Act Delivers Relief to Main Street America

Small businesses have long served as the beating heart of our communities. They create jobs and pay taxes. They support local youth programs and give generously to fundraisers. They offer up the things we love most—and they’re our favorite hangouts and places to celebrate. For many of us, our relationships with Main Street businesses aren’t transactional. Rather, the people who keep those businesses humming are extensions of our families.

They’ve been there for us. And, now, as many Third District businesses struggle to keep the lights on amid COVID-19, Dean is proving—once again—that he’s there for them.

Help is on the way.

Dean’s bi-partisan Paycheck Protection Program Flexibility Act (PPPFA) has been signed into law, and it will usher in relief to the independent bars, restaurants, barbershops, retail shops, and salons who’ve been suffering through no fault of their own. 

A necessarily rushed plan, the Paycheck Protection Program (PPP) was designed to help keep businesses afloat through two to three months of social distancing. But some fell through the cracks, and Dean saw the timeline extending much further—complicating the success of this critical relief for many.

As one of the few congressmen who is also a small business owner, Dean recognized quick action could make all the difference. He understood, as well, that keeping our small businesses afloat wasn’t a Democratic issue or a Republican issue; it was—and is—a healthy, thriving community issue.

So, he reached out to Main Street. He reached across the aisle. He knew bipartisan, small business-informed changes to PPP could help our small business communities survive.

In gathering together the best of Main Street and across-the-aisle players, like Texas Republican Congressman, Chip Roy—Dean brought compelling vision and real-world insight to the table. The result: Effective small business relief—rooted in the experiences of small business owners and a spirit of bipartisanship.

Delivering common-sense solutions to Main Street America

Here’s how Dean’s PPPFA supports small businesses in the Third District—and across the country.

Extends the timeline for loan forgiveness

Before PPPFA was signed into law, small businesses could only have expenses forgiven if they fell within the eight-week window that followed the receipt of their PPP loans. Many of our treasured local businesses still can’t reopen, however—and those that have are finding customers very slow to return.

Dean recognized that small business relief needed to match the reality of the 100-year threat we face. That’s why the PPPFA grants small businesses the power to spread loans out over 24 weeks, allowing more time for customers to return and helping them remain in business and keep employees on the payroll—especially our hardest-hit restaurants and retail shops.

Grants much-needed loan flexibility

The PPP originally required businesses to use at least 75% of their loans to fund payroll. For the many businesses unable to reopen or operating under capacity, however, their most significant money issues are tied to non-payroll expenses, like mortgage, rent, and utility payments. These are expenses that can represent far more than 25% of their total operating expense.

Through the PPPFA, Dean helps give businesses, including bars, restaurants, and retail shops, the flexibility they need to stay solvent, which, ultimately, empowers them to retain their staff.

Extends the term of PPP loans

We know from previous economic declines, like those that followed 9/11 and the Great Recession, that recovery simply doesn’t happen overnight. In fact, it took many of those businesses more than two years to find their feet again.

Dean recognizes that our small businesses need more runway to recover from the COVID-driven shock to our economy. That’s why the PPPFA extends the terms of small business loans—giving business owners the time they need to restart their engines.

Ensures businesses can also take advantage of payroll tax deferment

Previously, small businesses could have their PPP loans forgiven or they could take advantage of payroll tax deferral, but not both.

As a small business owner, Dean understands that having access to every tool available to protect cash flow is critical. That’s why the PPPFA grants small businesses the ability to leverage the benefits of both PPP loans and payroll tax deferment—ensuring they have the capital necessary to weather this economic crisis.

Extends the deadline to rehire staff

The challenges and concerns we all face at this time make rehiring staff a struggle. No longer will small businesses lose their loan forgiveness if they’re unable to restaff by June 30th.

Given that these circumstances live outside the control of small businesses, and that loan forgiveness is crucial to helping them bridge the gap, Dean’s PPPFA extends that rehiring deadline, giving businesses the time they need to meet their obligations.

When our small businesses thrive, so do our communities

Dean is committed to helping our independent restaurants, retailers, barbershops, salons, and countless other small businesses recover—ensuring they remain as valued fixtures in our communities for decades to come.

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