Government Resources: Federal Level
NPMA continues to monitor the situation in the US and Canada to provide updates on any legislation or regulations that could affect our industry. If you have any questions on federal activity, please contact Ashley Amidon, NPMA's VP of Public Policy.
New Senate PPP Bill Introduced Allowing a Second Loan
Senators Ben Cardin (D-Md.), Chris Coons (Del.) and Jeanne Shaheen (N.H.) introduced The Prioritized Paycheck Protection Program (P4) Act this afternoon that would allow businesses with less than 100 employees who have suffered as a result of COVID-19 to take out a second PPP (or P4) loan.
Qualifying borrowers must have 100 employees or less or be self-employed and must also be able to demonstrate a loss of more than 50% in gross receipts for a quarter in 2020 compared to a quarter in 2019. They must have exhausted (or be on pace to exhaust) their first PPP loan and certify they need the funding to support ongoing operations for covered expenses (payroll and rent/utilities/mortgage).
Publicly traded companies would not be eligible, and a P4 loan must not exceed $2 million. The Small Business Administration (SBA) would provide priority to companies with ten employees or less. If passed, the deadline to apply for these P4 loans would be October 1, 2020, although the SBA would be empowered to extend that deadline.
Many in the Senate have not had a chance to comment on this legislation yet given it's only several hours old. NPMA will continue to monitor this and other COVID-19 bills that could impact the industry.
President Trump Signs PPP Changes Into Law
President Trump has signed H.R. 7010 the Paycheck Protection Program Flexibility Act into law. The bill makes two significant changes to the PPP loans. Previously, 75% of the funds could be used on payroll and 25% towards rent, utilities, and/or mortgage payments; now 60% can go towards payroll and 40% to rent/utilities/mortgage payments. Originally loans had to be used within 8 weeks; the bill now extends that to 24 weeks. NPMA applauds the passage of this bill and the increased flexibility it will give to small businesses.
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