Pappas, Hagedorn, Murphy Introduce Bipartisan Legislation Expanding Aid to American Small Businesses and Workers

Today Representatives Chris Pappas (NH-01), Jim Hagedorn (MN-01), and Stephanie Murphy (FL-07) introduced bipartisan legislation to expand the benefits available to American small businesses and workers by improving the coordination between the Paycheck Protection Program (PPP) and the Employee Retention Tax Credit (ERTC).

The Paycheck Protection Program Improved Coordination Act of 2020 strengthens PPP, which was established by the CARES Act to help small businesses retain and pay their employees during these unprecedented economic conditions. Unfortunately, small businesses receiving a PPP loan are currently prohibited from claiming the ERTC, even on wages not forgiven under the PPP. This legislation streamlines and better coordinates these federal small business support programs by allowing wages not forgiven under the PPP to be claimed for the ERTC.

"As a small business owner myself, I understand the challenges and tough decisions far too many employers across America are currently facing," said Pappas. "We are experiencing levels of hardship that we have never seen before and we know that the recovery period will continue even after businesses begin to reopen their doors. In order to get our economy back on track, it is essential that we strengthen and streamline federal programs so that businesses can remain afloat and American workers can continue to provide for their families."

"Authorizing businesses to utilize both the Employee Retention Tax Credit and Paycheck Protection Program will help keep Americans employed and providing for their families. I am proud to work in bipartisan fashion with Reps. Pappas and Murphy, along with other House colleagues, to sustain small businesses and fuel economic growth as we reopen our country safely, responsibly and promptly," said Hagedorn.

"I'm proud to help introduce this legislation with Congressman Pappas to ensure that small businesses whose operations have been significantly impacted by COVID-19 can obtain federal financial support under both the Paycheck Protection Program and the Employee Retention Tax Credit initiative," said Murphy. "During this unprecedented public health and economic crisis, Congress should give small businesses and their workers all the tools they need to endure this difficult period."

Since the onset of this pandemic, Pappas has served as a leading voice for American small businesses in Washington. Congressman Pappas introduced the Too Small to Fail Act, which would make available $350 billion in zero-interest Economic Injury Disaster Loans (EIDL) to small businesses and nonprofits affected by the coronavirus outbreak to help keep their doors open and meet their ongoing obligations.

Pappas has also repeatedly called on House Republican and Democratic leadership to come together and pass meaningful support for families, local communities, and small businesses in New Hampshire and to ensure that Congress puts a focus on the urgent needs of Main Street small businesses and their workers who are struggling.