PIA National today sent a letter, along with over 100 business associations, to request key changes to the Paycheck Protection Program (PPP) in the CARES Act. The letter asks for the repeal of the Paycheck Protection Program’s (PPP) 75%-25% rule, as well as to extend the eight-week period for purposes of calculating loan forgiveness, and extending the June 30th rehiring date.
The letter notes that with stay-a- home orders for much of the country remaining in effect beyond the few weeks the PPP originally was designed for, changes need to be made to help businesses remain in operation. The 75%-25% rule for the PPP required 75 percent of the PPP loan go toward payroll, which has hindered the ability of small businesses to stay afloat because they can’t use the appropriated amount needed to pay rent, mortgage, utilities or restart vendor contracts. Hamstringing business owners when they are trying to stay in business is not helpful, and so the PPP needs to be reformed.
Repealing the 75%-25% rule, along with the other changes requested in the letter will allow small businesses to remain operational. In addition, the extended deadlines will permit a more orderly return to work consistent with the phased reopenings.
PIA National will continue to work with the business community on ways to improve the PPP and provide other assistance to businesses during this difficult time.