Rep. Axne Backs Legislation to Give Iowa’s Small Businesses A Second Chance at Paycheck Protection Program Funding

Today, Rep. Cindy Axne (IA-03) announced that she is cosponsoring legislation to allow smaller businesses affected by the coronavirus (COVID-19) pandemic to apply for a second round of Paycheck Protection Program (PPP) funding to help keep their businesses afloat.

The Prioritized Paycheck Protection Program Act would allow businesses with 100 or fewer employees that have already exhausted (or are about to exhaust) their first PPP loan to apply for a second loan to keep up with operational and payroll expenses – provided they lost more than half their revenue and can certify additional needs for funding. This would make the remaining $130 billion of authorized funding in the PPP available for the hardest-hit businesses and industries.

“As this pandemic continues, Iowa’s small businesses are facing the crushing economic reality that the effects of this crisis are not likely to disappear by the time current federal aid runs out,” said Rep. Axne. “If the aid we approved in March and April – billions of which are still available – is unusable by the small businesses that have been struggling to stay afloat since the pandemic began, then all we will have done is delay the economic cliff we sought to prevent. With this legislation, we preserve the lifeline for our smallest businesses who still need our help to survive.”

Earlier this month, Rep. Axne heard from Iowa businesses affected by the cancellation of the 2020 Iowa State Fair that PPP funding and federal aid programs would be necessary to help make up lost revenue beyond the original June 30 deadline.

“I’ve heard from businesses that used their PPP loans this spring to keep their workers paid and their lights on, but as we near a half year of interrupted business and cancelled events, the lack of additional funds is threatening to sink them,” said Rep. Axne. “Businesses that provide for our communities need our help, and with funding already allocated this is a commonsense way to protect the most vulnerable enterprises through the next phase of this crisis.”

The Prioritized Paycheck Protection Program Act was introduced in the House by Reps. Angie Craig (MN-02) and Antonio Delgado (NY-19). It has also been introduced in the Senate by Sens. Ben Cardin (MD), Chris Coons (DE), and Jeanne Shaheen (NH).

Legislation to reopen the PPP application window for qualifying first-time loan recipients until August 8, 2020 passed unanimously in Congress and was signed into law on Friday.

In June, President Trump signed legislation cosponsored by Rep. Axne that improved the terms of PPP loans for Iowa businesses by extending the term of the loan to 5 years, adjusting the restrictions on non-payroll expenses, and allowing loan forgiveness for expenses beyond the original 8-week period.

Businesses interested in applying for a PPP loan should contact their local lender or contact the Iowa office of the U.S. Small Business Administration.