Wyden, Colleagues Urge Trump Administration to Raise PPP Non-payroll Forgiveness Cap
Request would allow small businesses to spend up to 50% of the loan proceeds on the statutorily allowed non-payroll expenses such as rent, utilities and mortgage interest payments
Washington, D.C. -- U.S. Sen. Ron Wyden today joined a bipartisan group of colleagues to urge the Trump administration to raise the Paycheck Protection Program’s (PPP) non-payroll forgiveness cap from 25 percent to 50 percent.
In a letter from Wyden and 18 other senators to U.S. Treasury Secretary Steven Mnuchin and Small Business Administrator Jovita Carranza, the lawmakers noted that PPP loans allow loan proceeds used towards payroll, utilities, mortgage interest, and rent payments to be forgiven when at least 75 percent of the loan is spent on payroll.
The senators’ request to raise the cap would allow small businesses to spend up to 50 percent of the loan proceeds on the statutorily allowed non-payroll expenses such as rent, utilities and mortgage interest payments.
“The 25 percent threshold is problematic for several business sectors, especially those whose mortgage, rent, or utility payments constitute a large portion of fixed monthly expenses. If they are unable to cover these expenses, they will have to decide between keeping their doors open, at personal financial risk, or closing shop and laying off employees,” the senators wrote. “These are businesses that will not recover. Such an outcome would result in mass layoffs that would shift more Americans onto unemployment, presenting significant long-term costs to families, businesses, and states.”
“We ask that you exercise the power of your respective offices to ensure all business sectors are able to spend up to 50 percent of the loan proceeds on the statutorily allowed non-payroll expenses. Access to loan forgiveness was a critical component of the CARES Act, and making it as effective as possible will help further the CARES Act’s goal of supporting small businesses while keeping American workers employed,” they wrote.
In addition to Wyden, others signing the letter led by U.S. Sens. Bob Menendez (D-N.J.) and John Cornyn (R-Texas) were Sens. Chris Van Hollen (D-Md.), Richard J. Durbin (D-Ill.), Michael F. Bennet (D-Colo.), Kyrsten Sinema (D-Ariz.), Kirsten E. Gillibrand (D-N.Y.), Cory A. Booker (D-N.Y.), Christopher Coons (D-Del.), Patrick Leahy (D-Vt.), Richard Blumenthal (D-Conn.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), John Boozman (R-Ark.), Lindsey Graham (R-S.C.), Cory Gardner (R-Colo.), Roger F. Wicker (R-Miss.) and Kelly Loeffler (R-Ga.)
A copy of the entire letter is here.
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