Trade Groups Ask for Paycheck Protection Program Changes
The Tire Industry Association (TIA) and other trade groups are asking government officials to make several key amendments to the Paycheck Protection Program (PPP).
In a letter directed to House Speaker Nancy Pelosi, Senate Majority Leader Mitch McConnell, Treasury Secretary Steve Mnuchin and others, TIA and other associations requested “emergency and administration action” to repeal the program’s 75%-25% rule, extend the eight-week period “for purposes of calculating loan forgiveness,” and extend the June 30 safe harbor date for rehiring and pay restoration.
“These steps would conform the PPP with the reality of the gradual reopening now occurring across the United States and would help ensure that more small businesses remain in operation.
“The current rules made sense when the program was created, and it was anticipated that stay-at-home orders would last only a few weeks. However, their implementation in the current environment is making it harder for small businesses to survive. Small businesses that close permanently will never be able to rehire their employees.
“These three modest changes would help ensure that the liquidity provided through the PPP can be deployed in a manner that is most likely to allow a small business to remain operational.
“Specifically, these changes would help small business owners who need capital for overdue rent payments, the re-start of vendor contracts, and other necessary expenses. In addition, the extended deadlines would permit a more orderly return to work consistent with the phased reopening.”