Dear Speaker Pelosi, Leader McConnell, Leader McCarthy, Leader Schumer, Secretary Mnuchin, and Administrator Carranza:
We are writing to request emergency legislative and administrative action to: (1) repeal the Paycheck Protection Program's (PPP) 75%-25% rule, (2) extend the eight-week period for purposes of calculating loan forgiveness, and (3) extend the June 30 safe harbor date for rehiring and restoration of pay. 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 undersigned small business organizations are grateful for the efforts underway by Congress, the U.S. Small Business Administration (SBA), and the U.S. Department of Treasury (Treasury) in the creation, development, and implementation of the PPP. 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.