While ABC is pleased with Congress and the U.S. Small Business Administration’s efforts to combat the COVID-19 emergency and strengthen the American economy through the Paycheck Protection Program, members have raised concerns about current guidance and requirements.
On May 15, ABC submitted comments on an interim final rule implementing the temporary PPP program, urging SBA to take action on the following in order to assist small businesses:
- Expand the formula for PPP loan disbursement
- Provide further clarification on certification guidance
- Eliminate the requirement for loan recipients to dedicate at least 75% of the loan toward payroll costs
- Increase flexibility on rehiring requirements for employers
- Provide further guidance on loan forgiveness and, specifically, clarify the calculation for full-time equivalent employees to determine the total amount of loan forgiveness
The PPP was created on March 27, 2020, when President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act, which authorized the SBA to temporarily guarantee loans and provided immediate assistance to individuals, families and businesses affected by the current national emergency.
ABC will continue to provide updates on the PPP and other SBA resources through Newsline.