HENRICO, VA – U.S. Representative Abigail Spanberger co-led a bipartisan effort urging the administration to provide fair, targeted assistance to Central Virginia small businesses and address disparities in the initial distribution of Paycheck Protection Program (PPP) loans.
Under current guidance from the U.S. Small Business Administration (SBA) and the U.S. Treasury Department, Central Virginia small businesses have a very limited window to seek an increase in their PPP loan amount through their lender. Due to the combination of this short window of time and the complexity of the PPP application process, many businesses — particularly sole proprietors and seasonal businesses — have received smaller PPP loans than they’re entitled to receive.
In a letter sent to U.S. Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza, Spanberger and her colleagues emphasized how business owners need a flexible timeframe to address disparities in their loan amounts. In their letter, they requested that additional, immediate flexibility be provided to PPP borrowers, given the significant legislative and regulatory changes that have occurred since the launch of PPP.
“Preventing businesses from accessing full PPP assistance will have significant consequences for America’s economic recovery,” said Spanberger and her colleagues in their letter. “For this reason, we ask that all available flexibility be provided to allow PPP borrowers to seek an increase in their loan amount if they are entitled to a greater level of assistance than they received. This commonsense step will help businesses and workers across the country endure the sustained impact of the COVID-19 pandemic.
Spanberger co-led the effort with U.S. Representatives John Katko (R-NY-24), Elise Stefanik (R-NY-21), and Xochitl Torres Small (D-NM-02). The letter was also signed by U.S Representatives Josh Gottheimer (D-NJ-05), Bryan Fitzpatrick (R-PA-01), Kendra Horn (D-OK-05), and Ed Case (D-HI-01).
Last month, President Trump signed legislation supported by Spanberger to provide greater flexibility to Central Virginia small businesses and restaurants as they look to use PPP loans to cover critical expenses and build plans for reopening.
Click here to read the full letter, and the full letter text is below.
Dear Secretary Mnuchin and Administrator Carranza,
Thank you for your work to support America’s small business community amid the Coronavirus Disease 2019 (COVID-19) pandemic. In the interest of continuing to support these businesses and their workers, we write to express strong support for targeted improvements to the Paycheck Protection Program (PPP). Specifically, we request administrative action to allow small businesses to seek an increase in their PPP loan if they are entitled to a greater amount of assistance than they received.
Established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, PPP loans provide critical assistance to small businesses impacted by the COVID-19 pandemic. These loans have helped millions of businesses keep their doors open and have ensured a steady income for many working families by guaranteeing loan forgiveness for employers that maintain their payroll. Given the importance of PPP loans to our nation’s economic recovery, it is critical that the program remain responsive to the needs of all of America’s businesses.
For many sole proprietors and seasonal businesses, uncertainty surrounding PPP lending has resulted in these businesses receiving less assistance than they are entitled to under the program. In some instances, businesses have received a final PPP loan amount, only to have the amount of assistance they are eligible for increased by subsequent guidance from the Small Business Administration and U.S. Treasury Department. These businesses find themselves with a very limited window to request increased PPP funding, with many having no available options to seek additional assistance.
Preventing businesses from accessing full PPP assistance will have significant consequences for America’s economic recovery. For this reason, we ask that all available flexibility be provided to allow PPP borrowers to seek an increase in their loan amount if they are entitled to a greater level of assistance than they received. This commonsense step will help businesses and workers across the country endure the sustained impact of the COVID-19 pandemic.
Thank you for your time and attention to this request. We look forward to your response.