Washington, D.C. – Today, the Economic Innovation Group (EIG), along with leading associations and organizations representing the industries and small businesses most deeply affected by COVID-19, released a letter to House and Senate leadership calling for Congress to swiftly implement structural improvements to the Paycheck Protection Program (PPP). The letter follows recommended improvements to PPP outlined earlier this month by EIG.
“The survival of America’s small businesses is essential to a strong recovery from the economic shutdown,” the organizations wrote. “We commend Congress and the agencies for designing and implementing this emergency program in the midst of an unprecedented crisis. PPP is an important first step and has aided more than a million businesses in its first weeks of implementation. However, the need for greater scale and flexibility in the program cannot be overstated. We therefore urge Congress to act immediately to strengthen this program and ensure it provides the resources and flexibility needed for small businesses to navigate this ongoing health and economic crisis.”
In addition to greater funding, the letter outlines eight urgent structural improvements needed to ensure PPP can serve the needs of deeply affected small businesses during this time of unprecedented economic disruption, including:
- Extending the duration of the program through December 31, 2020.
- Removing funding uncertainty.
- Increasing borrowing limits so businesses can withstand an extended period of lost revenues and operational disruption.
- Expanding the list of covered expenses.
- Extending the covered period for loan forgiveness.
- Making the re-hiring deadline contingent on when the loan commences.
- Ensuring businesses are not penalized if former employees are unwilling to return.
- Discouraging unaffected businesses from applying.
The 21 signatories, which represent many of the industries most deeply impacted by COVID-19, include the American Hotel & Lodging Association, Asian American Hotel Owners Association, Disability:IN, Economic Innovation Group, Exhibition Services & Contractors Association, Experiential Designers + Producers Association, International Association of Amusement Parks and Attractions, International Association of Exhibitions and Events, International Association of Venue Managers, International Franchise Association, Main Street Alliance, Main Street America, National Association for the Education of Young Children, National Association of Women Business Owners, National Restaurant Association, National Small Business Association, Small Business Majority, Small Business Roundtable, Society of Independent Show Organizers, U.S. Hispanic Chamber of Commerce, and the U.S. Travel Association.
A copy of the letter with detailed recommendations is available here.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is an ideas laboratory and advocacy organization whose mission is to advance solutions that empower entrepreneurs and investors to forge a more dynamic American economy. Headquartered in Washington, D.C. and led by an experienced, bipartisan team, EIG convenes leading experts from the public and private sectors, develops original policy research, and works to advance creative legislative proposals that will bring new jobs, investment, and economic growth to communities across the nation. For more information, visit eig.org.