Congressman Steven Horsford Votes to Increase Support for Small Businesses and Ensure Funds Go to Those in Greatest Need

Washington, D.C. -- Today, Congressman Steven Horsford (NV-04) voted for two bipartisan bills to help small businesses and workers across the country during the COVID-19 pandemic. Led by Congressman Dean Phillips of Minnesota (H.R. 7010), the Paycheck Protection Program Flexibility Act solves urgent issues with the Paycheck Protection Program (PPP) facing small business owners in Nevada and across the country who are struggling the most as a result of the coronavirus. The bipartisan TRUTH Act (H.R. 6782), was introduced by Reps. Phillips and Brian Fitzpatrick (R-PA) and will improve transparency in SBA lending, including in both the PPP and Economic Injury Disaster Loan (EIDL) programs.

"I have heard time after time from Nevada's small business owners, the backbone of our economy, that they are unable to access the SBA loans created under the CARES Act. Congress must act to guarantee that Main Street and its mom and pop shops receive the financial support they need," Congressman Horsford said. "We cannot continue to accept a situation in which bigger businesses push to the front of the line to access these crucial loans, at the expense of those with the greatest need -- particularly the minority, women and veteran-owned businesses that are struggling the most during the pandemic."

The TRUTH ACT (H.R. 6782) will improve transparency in SBA lending: requiring the SBA to identify borrowers with loans above $2 million and explain the decision-making process, including for both PPP and EIDL loans above this amount, so that funds go to the small businesses most in need. The bill also requires disclosure of assistance to socially and economically disadvantaged small business owners and women- and veteran-owned businesses.

The PPP Flexibility Act (H.R. 7010), which reflects the needs of vulnerable small businesses on Main Street, will increase flexibility and access to PPP loans including by:

• allowing forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline;
• increasing the current limitation on non-payroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent;
• extending the program from June 30 to December 31;
• extending loan terms from two to five years; and
• ensuring full access to payroll tax deferment for businesses that take PPP loans.