PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Kerrigan in Morning Consult: Fixing the PPP to Make it Work Better for Small Businesses and Workers

By at 13 May, 2020, 5:32 pm

In a May 13 Morning Consult Op-ed, SBE Council president & CEO Karen Kerrigan covers key changes to the Paycheck Protection Program (PPP) to make it more effective for small businesses and enable them to maintain the jobs that are critical to so many local economies. As she noted in the piece:

PPP needs to be updated and fixed to align with changing economic and business conditions on the ground. Many more small businesses want to tap the program for help, but some of rules are too restrictive or ill-fit for certain industries or businesses in hard-hit areas of the country where economic “reopenings” will be a much slower process.

The capital provided by PPP needs to be deployed in a way that is the most effective for as many small businesses as possible, which will ensure that as many jobs as possible are saved or available once the most challenging part of the crisis is behind us.

In the piece, she lists key changes that need to be made:

• Extending the “Covered Period” to December 31, 2020

• Providing Flexibility in the 8-Week Window to Loan Forgiveness to 24 Weeks

• Lifting the Arbitrary 75-25 Loan Forgiveness Ratio

• Expanding What is Forgivable in Non-Payroll Expenses to Include Technology Expenses

The latest House Democrat stimulus bill included the first three PPP changes, and a Small Business Administration IG report published on May 8 noted that the 75-25 rule “did not align” with the CARES Act.

Read the full Op-ed here.

 

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