WEST LAFAYETTE, Ind. (WLFI) -- More business are reaping the benefits of the newly passed Paycheck Protection Program Flexibility Act.
It is part of the original Paycheck Protection Program (PPP), but this legislation allows more businesses like farmers and minority-owned shops to get the money they need to stay open.
Congressman Jim Baird said the new plan makes it easier for the loans to be forgiven.
If a business meets the program's rules, including a requirement that it spends at least 60 percent of its aid money on payroll it does not have to pay back the loan.
The expansion gives borrowers 24 weeks to spend their aid money instead of the previously stated eight and allows them re-hire laid-off employees.
Baird represents Indiana's 4th congressional district which includes many counties in our viewing area including Tippecanoe, Newton and Montgomery.
He said the new legislation allows businesses to get their money sooner.
"They have been struggling and have had enough difficulty the way it is," said Baird. "So the program was designed to get the money to them as quick as possible and give them the flexibility to counter act that as they try to make reimbursement and move forward."
Baird adds he's proud of the resilience small businesses in Indiana have shown during the pandemic.
"More importantly it had a real impact on relieving some of the stress and pressure some of these small business are facing under this coronavirus," said Baird. "You have to realize this is a whole new ball game for all of us."
If a business has to pay back the loan, under the new rules they can take up to five years to do so.
The previous legislation said they must do so in two years.
Congressman Baird said many small business have been approved and received their funds within a week.
There is still $129 billion in funding left.