Henrico Citizen: Spanberger, others urge SBA to eliminate PPP stipulation

Requirement that at least 75% of loan amount be used for payroll too strict, representatives say

HENRICO CITIZEN

U.S. Congresswoman Abigail Spanberger, who represents the western half of Henrico County and Virginia’s Seventh District, joined with seven other members of the House of Representatives yesterday to issue a letter urging the U.S. Small Business Administration and Department of Treasury to improve flexibility for small businesses that are seeking federal assistance and own forgiveness through the SBA’s Payroll Protection Program, or PPP.

The version of the CARES Act passed by Congress required businesses that received a PPP loan not to reduce their total payroll by more than 25 percent in order to have the loan fully forgiven. But the SBA later added a much stricter stipulation, saying that loan recipients must spend at least 75 percent of the money on payroll (leaving only 25 percent for rent or utilities payments) or else risk having to pay some of the loan back.

Spanberger, a Democrat, joined with five other Democrats and two Republicans to urge officials to eliminate that provision.

“We ask that you rescind this requirement and allow small businesses the flexibility, within the parameters set forth by Congress, to use the PPP loans as necessary to keep their individual business afloat,” the eight wrote.

In addition to Spanberger, the letter was signed by U.S. Representatives Paul Mitchell (R-MI-10), Kathleen Rice (D-NY-04), Brian Fitzpatrick (R-PA-01), Dean Phillips (D-MN-03), Jason Crow (D-CO-06), Elaine Luria (D-VA-02), and Gil Cisneros (D-CA-39).

Recent Posts


Feb 29, 2024
Economy & Jobs

Spanberger Statement on Vote to Prevent Government Shutdown, Protect Virginia’s Economy

WASHINGTON, D.C. — U.S. Representative Abigail Spanberger today released the following statement after voting with a bipartisan majority of the U.S. House to pass a short-term, stopgap funding measure — known as a “continuing resolution” — to avoid a shutdown that would damage Virginia’s economy. The legislation includes two staggered deadlines to keep the federal […]



Feb 29, 2024
Press

During Black History Month, Spanberger Introduces Bill to Name Fredericksburg Post Office for Civil Rights Leader, Gladys P. Todd

Gladys P. Todd Was A Revered School Teacher, Voting Rights Advocate, & Community Organizer in Fredericksburg WASHINGTON, D.C. — U.S. Representative Abigail Spanberger today introduced legislation to rename a Fredericksburg post office after Gladys P. Todd, a prominent leader in the Fredericksburg civil rights movement. Located at 1285 Emancipation Highway in Fredericksburg, the post office […]



Feb 28, 2024
Infrastructure

Spanberger Leads Virginia Lawmakers in Working to Protect $30 Internet Discount for Virginia Families, Fund Affordable Connectivity Program

The “Affordable Connectivity Program” Right Now Helps More than 455,000 Virginia Households Afford High-Speed Internet WASHINGTON, D.C. — U.S. Representative Abigail Spanberger today led members of the Virginia congressional delegation in a bipartisan effort urging the U.S. House Committee on Appropriations to extend funding for a key discount program that allows more Virginia families to […]