Rep. Rouda Sends Letter to U.S. Treasury Department and U.S. Small Business Administration Requesting Paycheck Protection Program Loan Clarity
Laguna Beach, CA – Congressman Harley Rouda (CA-48) sent a letter to the U.S. Department of the Treasury and the U.S. Small Business Administration requesting clarifying guidance regarding Paycheck Protection Program (PPP) loan forgiveness provisions and to provide greater flexibility to small businesses who continue to struggle to meet the current administrative requirements of the program.
"Both Congress and the Administration established guidelines to ensure PPP proceeds would be used to keep small businesses afloat and workers employed during this public health emergency," said Rouda. "However, some requirements are placing an undue burden on vulnerable small businesses attempting to utilize PPP funds. Small business owners utilizing PPP loans need clarity and flexibility immediately."
Congressman Rouda's letter asks agencies to:
• Issue clarifying guidance regarding the application of employment retention and minimum payroll expense requirements;
• Allow employers to use excess proceeds toward payroll costs beyond the initial eight-week period if they do not initially meet the 75 percent threshold, particularly for businesses that have been forced to shutter due to public health orders; and
• Provide common-sense flexibility for employers that meet the congressional intent that such loans should help keep employees on the payroll and ultimately be forgiven.