Torres Small Follows Through on Commitment to New Mexico’s Small Businesses, Votes for Small Business Relief Program Fix and Increased Loan Transparency

Washington, DC – Today, Congresswoman Xochitl Torres Small (D-NM) voted in support of two bipartisan bills, the Paycheck Protection Program Flexibility Act and the TRUTH Act. The first piece of legislation passed the House and will provide New Mexican small business owners with additional support and relief by lifting arbitrary restrictions and improving repayment terms for Paycheck Protection Program (PPP) loans. Torres Small also voted in favor of legislation which would have required the Small Business Administration (SBA) to increase its transparency.

The vote comes after Torres Small led bipartisan letters with her colleagues on both issues calling on Congressional Leadership to pass legislation that would help small businesses weather this economic downturn.

“Over the past several weeks, I have advocated for improving the flexibility and transparency of the SBA’s PPP loan program with my colleagues on both sides of the aisle.  Today, Congressional Leadership heeded my call, and the House successfully passed legislation that will provide needed relief to New Mexico’s small businesses. By changing the terms of use and repayment for PPP loans, New Mexico’s small businesses now have the flexibility they need to help keep their doors open and staff employed while avoiding being saddled with debt. Today’s vote was an important step in our recovery, but more challenges remain and we must work together to find the solutions,” said Torres Small. “Unfortunately, in failing to pass the TRUTH Act, Congress has let down small business owners across the country and dealt another blow to their confidence in relief programs. Transparency is essential to accountability, and I urge my colleagues reconsider taking up this legislation.”

Both bills include specific measures Torres Small fought for while monitoring distribution of relief:

• On April 16th, Torres Small called on Leadership to take action on the Department of Treasury’s burdensome requirements on loan forgiveness, particularly the requirement that 75% of the loan be spent on payroll costs.
• On May 4th, Torres Small called on U.S. Treasury and SBA to be transparent and release the names of businesses who have received funds. 
• On May 7th, Torres Small urged Leadership to provide more flexibility for businesses to spend PPP funds. 

Congress established the Paycheck Protection Program through the CARES Act and Payroll Protection Program and Health Care Enhancement Act, allocating more than $2 trillion to provide immediate relief to small businesses. However, some of the guidelines for spending have put undue strain on vulnerable businesses, creating additional roadblocks instead of providing relief. Additionally, to date, SBA has not provided full transparency over its administration of the PPP, leaving many to question the distribution of millions of dollars of relief.

The legislation voted on today aims to address these two issues, with the goal of delivering relief to the small businesses that need it most. 

• The Paycheck Protection Flexibility Act allows forgiveness for expenses beyond the 8-week covered period, eliminates restrictions that limit non-payroll expenses, eliminates restrictions that limit loan terms to 2 years, ensures full access to payroll tax deferment for businesses that take PPP loans, and extends rehiring deadline. See bill text here.
• The TRUTH Act would direct the SBA to explain and justify all disbursements of coronavirus relief funds, ensuring transparency from the agency. See bill text here.

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