Dear Majority Leader McConnell and Democratic Leader Schumer:
I am writing on behalf of the Small Business Legislative Council (SBLC) regarding the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. We strongly support, and sincerely appreciate, Congress' efforts to provide critical capital to help America's small businesses and their employees weather this unprecedented crisis.
We have already seen real world examples of these programs helping businesses keep their employees on payroll and avoid defaulting on their debt obligations. However, on the other hand, we have also had reports from a significant number of small businesses that have struggled to access these loans - from locating a lending institution that will accept their application to navigating the application process itself. Additionally, the SBA has imposed limits to EIDL loan funding that are significantly below what was provided by statute - rendering the loans insufficient to provide meaningful help to the vast majority of small businesses. Finally, our members, most of which are 501(c)(6) organizations, have themselves been excluded from accessing the PPP funding, which is causing them hardship.
The funds appropriated for the PPP and EIDL programs are already exhausted. In the face of this, we urge Congress to take swift action to secure the vision and intent of the PPP and EIDL by authorizing additional funding for these programs and to expand PPP eligibility to 501(c)(6) organizations.
America's small businesses and the groups that support them will play a critical role in stabilizing and rebuilding our economy when we emerge from this crisis. However, they can only do so if they have the resources to survive the next weeks and months.
We thank you for your consideration of this matter and stand ready to provide any additional information or assistance that you or your staff may require.