Letter to SBA Administrator Carranza: Technology and Software Expenses as Forgivable Under PPP

By SBE Council at 11 May, 2020, 11:52 am

The Honorable Jovita Carranza

Administrator

U.S. Small Business Administration

409 3^rd Street SW

Washington, D.C.  20416

Dear Administrator Carranza:

On behalf of the Small Business & Entrepreneurship Council (SBE Council) and our nationwide membership of entrepreneurs and small businesses, thank you for your tireless work in assisting small businesses with their unprecedented challenges as a result of COVID-19.  The efforts of the entire team at the Small Business Administration (SBA) are appreciated by the small business community, and SBE Council will continue to work with you on addressing the evolving needs of small businesses during the recovery period ahead.

There is a lot on your plate currently, but one critical piece of information I would like to bring to your attention is the fact that small businesses have turned to technology and internet tools in great numbers to help them weather the COVID-19 crisis. As you engage with the President, fellow Cabinet members, and key policy officials at the White House, we believe it is important that our leaders understand the transformation that is accelerating due to COVID-19. The digital and platform-based economy is growing at an exponential rate, and the federal government needs to support small businesses in this regard. For example, given the vastly higher use of technology and internet tools, platforms and software by small businesses during this extraordinary period (in order to stay open, communicate, transact, collaborate, and operate virtually), we believe these technology costs are essential, and need to be specified as forgivable under PPP.

As you well know from your discussions with business owners over many years, one-size-fits-all does not work for the small business economy. Not all businesses are storefronts. Most are home-based, and many virtual businesses are software and platform dependent. These costs are just like “rent” or “utilities” to them.  Making these expenses forgivable under PPP would provide a boost – both financially, and to their morale.

As you know, SBE Council has been providing feedback to the White House and Congress on PPP and how it can work more effectively for small businesses, as the duration of the COVID-19 crisis has extended beyond what was anticipated. Please let me know how we can more effectively work with you and your team to help meet the needs of America’s entrepreneurs and small business owners.

Sincerely,

Karen Kerrigan, President & CEO