This week, ۽ֱ helped lead a coalition effort with the International Franchise Association (IFA) calling on Congress to expand the availability of “second draw” Paycheck Protection Program (PPP) loans for small businesses. A provision in the Senate GOP COVID relief proposal would allow small businesses to apply for a second PPP loan, but with stricter criteria than for the original PPP loans. One of the new requirements for second draw loans is that a business demonstrate a 50 percent loss in revenue. ۽ֱ called for lowering the revenue loss threshold, so that additional small businesses qualify.
Shortly thereafter, the Chair and Ranking Member of the Senate Small Business Committee, Senators Rubio and Cardin respectively, who have jurisdiction over the PPP program, announced that they filed legislation to lower the threshold to a revenue loss of 35 percent. While it is still unclear if Congress will strike a deal on a broader COVID-19 relief package, if a deal is reached, ۽ֱ expects that this provision would be included.
For additional information, please contact Matthew Turkstra, Director of Tax, Fiscal Affairs, and Accounting, at (202) 547-4733, or matthew.turkstra@agc.org.