The initiative provides for an increase in terms of payment and re-hiring of employees.
House Speaker Nancy Pelosi said Wednesday that the house is preparing a bill that increases the timing of payments and re-hiring as part of the anti-crisis lending program for small businesses.
“This initiative increases the time frame when people can be hired back, and the timing of loan repayments, and also eliminates the 75/25 rule, which was destructive,” Pelosi explained to reporters. Under the current terms of the program, 75 percent of the loan amount must be used to pay wages and no more than 25 percent to cover other expenses.
“We are concerned about the lack of transparency and how the administration is implementing certain elements of the program. And we saw an opportunity to fix something to make the program work better quickly. We couldn’t let this go unnoticed,” Pelosi added.