FOR IMMEDIATE RELEASE
Statement by Frank Knapp, Jr. BRTR co-chair and CEO of South Carolina Small Business Chamber of Commerce, on fixes to PPP that will help small businesses weather COVID-19
Washington, D.C., June 3, 2020—The Senate today passed a bill that corrects flaws in the Trump Administration’s handling of the Paycheck Protection Program (PPP) by giving small businesses much-needed flexibility in using the funds to weather the COVID-19 crisis. We urge the president to recognize his administration has botched this program and sign these fixes into law immediately.
The Trump Administration’s ongoing lack of clarity on the forgiveness provisions of the PPP loans and requirement to use 75% of the funds on payroll expenses within eight weeks of receiving the loans have scared many small businesses away from using the crucial funds. This bill reduces the payroll requirements and extends the timeframe to use the money–vitally important steps as small business expenses stemming from the shutdown mount and shelter-in-place orders remain in place for many.
Yet, there is still much to do to help small businesses and the need for financial help cannot be overstated. A BRTR survey of small business owners finds the economic impact of the COVID-19 pandemic has created an existential crisis for America’s small businesses: 88% have lost revenue, with 70% reporting they have lost 50% or more.
Since Congress has shown it wants to address the significant problems with the PPP loans, it should do what they should have done at the start: turn the loans into grants for the real small businesses in the program and expand those loans to reach the millions of deserving small businesses that have been locked out so far. Congress and the president must commit to helping small businesses over the long-term so they can focus on what they do best — innovating and creating jobs to lead our national economic recovery.
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About Businesses for Responsible Tax Reform
Businesses for Responsible Tax Reform is a coalition of business leaders calling for tax reform that truly benefits America’s small business owners. We are dedicated to ensuring tax reform is fiscally responsible, creates a level playing field for all businesses, grows the economy and works for our nation’s 30 million small business owners. Learn more about us on our website and follow us on Twitter and Facebook.
Contact
Conan Knoll
conan@emcstrategies.com
(831) 524-6764