DONALD Trump signed off on the new Paycheck Protection Program bill – but he warned he warned that proxy voting by the House may make it "unconstitutional."
The updated PPP Act gives flexibility to restaurants, hotels, and other small businesses to use loans to pay for payroll, employee benefits, and other expenses during the COVID-19 outbreak.
On Friday, the President highlighted the legislation had "uncertain constitutionality" because members voted on behalf of others who weren't actually present, however.
His statement read: "Because the Act is essential to protecting jobs as the Nation begins to reopen the economy, I have signed the Act into law without delay.
"I urge the Congress to pass the Act anew through traditional in-person voting at the earliest available opportunity."
Trump cited the "unprecedented proxy voting system used by the House of Representatives that permitted Members to cast votes on behalf of, and record the presence of, other Members who were not actually present."
The bill restructures how entrepreneurs can use loans via a new federal relief program for small businesses after many owners struggled to meet the terms of the current program.
The Paycheck Protection Program Flexibility Act of 2020 was passed in the Senate on Wednesday and the House passed it last week.
If owners meet certain conditions, PPP loans convert into a federal grant – but owners must spend their money within eight weeks, directing 75 percent of funding to payroll costs.
The deadline has been to 24 weeks from eight weeks in the updated legislation, reducing the funding direct towards payroll costs to 60p percent.
The June 30 deadline to rehire laid-off workers has also been extended as a result of the new PPP bill.
The Small Business Administration had approved over 4.5 million PPP loans worth $510.8 billion by Thursday evening.
More to follow…
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