HENRICO, V.A. – Following the reopening of the Paycheck Protection Program (PPP) this week, U.S. Representative Abigail Spanberger is encouraging eligible Central Virginia small businesses to apply for financial assistance.
This round of forgivable loans for small businesses comes after Spanberger helped negotiate and voted to pass a bipartisan, bicameral emergency relief package that included approximately $284 billion in first and second-round PPP funding. Last month, Spanberger helped kickstart relief negotiations and craft the bipartisan proposal that led to this additional funding.
“Many Central Virginia small business owners have told me directly that the PPP program has been nothing short of a lifeline for their business and their employees. Without this additional funding, many of our local small businesses would simply be forced to close their doors or lay off their staff,” said Spanberger. “Last month, we finally passed a bipartisan relief package that includes billions in additional funding for the hardworking men and women who keep our economy strong. Going forward, we must work together to keep our businesses afloat and help them prepare for a safe and successful economic recovery. As that occurs, these loans will serve as a much-needed bridge from the current crisis to the future. I’d like to thank all Central Virginia small businesses who’ve provided feedback about what’s working – and what’s not – related to the PPP program, and I encourage any business with questions or concerns to please reach out to my office.”
For more information, small businesses can visit the U.S. Small Business Administration (SBA) website here and find contact information for local SBA representatives here.
This PPP funding includes multiple commonsense changes that Spanberger pushed to include. Spanberger has long called for changes to the PPP program that better reflect the financial challenges facing restaurants, and this application cycle includes critical modifications to support restaurants as they look to apply for and receive PPP loans, including a change in the award formula to recognize the unique payroll restrictions of independent restaurants. Additionally, the COVID-19 relief package signed into law last month reverses rulings from the U.S. Treasury Department and allows PPP forgivable loans to still count towards tax deductions. Spanberger advocated for this change in December 2020.
The most recent COVID-19 relief package also ensures that Economic Injury and Disaster Loan (EIDL) Advance grants will no longer be subtracted against a small business owner’s PPP loan forgiveness, which is a change Spanberger advocated for as a cosponsor of the EIDL Forgiveness Act.
More than 113,000 Virginia businesses received PPP assistance in 2020 in response to the COVID-19 crisis.