Dear John,

There’s no doubt about it -- these past few months have been long. Workers have lost jobs. Businesses have struggled to stay afloat. Families have struggled to keep the lights on and food on the table. And while relief programs Congress has created -- including Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) grants -- have helped many families make ends meet and many businesses weather the storm, I also have heard important feedback from some small business owners that PPP is not fitting their needs.

So today, I’m writing to you to share that some important updates are on the way to help Oregon’s businesses. Earlier this week, the Senate passed some important modifications to the Paycheck Protection Program, which have just been signed into law, and will give our small businesses more flexibility to use PPP loans by:

--  Updating the percentage of PPP loans that need to be spent on payroll. The percentage is dropping from 75% to 60%, allowing businesses and nonprofits to spend more funds on other critical costs, including rent, mortgage payments, and utilities while still prioritizing workers.

--  Extending the window in which businesses can use their loans. Previously, PPP funds had to be spent within eight weeks. Now businesses have 24 weeks to use their funds. This is a critical change now that we know that the impact of COVID-19 is going to continue to affect our businesses throughout the summer and fall. 

--  Extending the safe harbor period for rehiring workers. Employers now have until December 31, 2020 to rehire their workers and still qualify for loan forgiveness.

--  Extending the loan term for businesses that do not have their loans forgiven. PPP recipients will now have five years, instead of two, to pay back any portion of their loan that is not forgiven.

I will continue to update my online economic recovery hub for Oregon businesses and 501(c)(3) nonprofits with more information as it becomes available and as Congress continues to update these programs.

We still have a long road ahead of us when it comes to rebuilding our economy, but these adjustments are an important step in the right direction. As we continue to make our way through this pandemic, I want to stay in touch with Oregon’s small business owners and workers. We need their insights driving our work in Washington, D.C., so that we can get through this crisis and emerge stronger on the other side.

All my best,
Jeff