Press Releases

Washington, DC – Today, Congressman Carbajal voted to pass the Paycheck Protection Program Flexibility Act. This legislation, which passed by a margin of 417-1, enacts bipartisan, highly sought-after changes to the Paycheck Protection Program’s (PPP) rules to make the program more accessible for vulnerable small businesses.

“Small business owners on the Central Coast have spoken loud and clear about the urgent need for adjustments to the Paycheck Protection Program. In the middle of a pandemic, there is no time for partisan gridlock,” said Rep. Carbajal. “I’m proud to join my colleagues on both sides of the aisle to save small businesses on the brink of collapse. I am hopeful that the Senate and President will follow suit and this bill will become law.”

In addition to the Paycheck Protection Program Flexibility Act, Congressman Carbajal voted in favor of the Small Business Transparency and Reporting for the Underbanked and Taxpayers at Home (TRUTH) Act. The TRUTH Act would enhance transparency in SBA lending practices to ensure funds from the PPP and Economic Injury Disaster Loan (EIDL) programs are funneled to small businesses who need it most.

The TRUTH Act was considered under suspension of the House rules, which stipulates legislation must earn a two-thirds majority in order to pass. Unfortunately only 38 Republicans joined all Democrats in voting in favor. The TRUTH Act ultimately failed to clear the threshold for passage.

Background on the Bipartisan Paycheck Protection Program Flexibility Act:

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

Background on the Small Business Transparency and Reporting for the Underbanked and Taxpayers At Home (TRUTH) Act:

• Requires the SBA to identify borrowers with loans above $2 million and explain the decision-making process to ensure funds are going to small businesses most in need.
• Requires disclosure of assistance to socially and economically disadvantaged small business owners.

Rep. Salud Carbajal represents California’s 24th Congressional District, encompassing all of Santa Barbara and San Luis Obispo counties, and part of Ventura County. 

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