Van Hollen, Raskin, Trone Press Administration for Urgent Fixes to PPP to Help Maryland Small Businesses
Members Pushing for Additional PPP Funding and Improvements to Ensure Relief Helps Marylanders
Today, U.S Senator Chris Van Hollen and Representatives Jamie Raskin and David Trone (all D-Md.) sent a letter to Treasury Secretary Steven Mnuchin and Small Business Administrator Jovita Carranza, pressing them to immediately update guidance to address urgent concerns expressed to the Members by Maryland small business owners. As noted in their letter, small businesses continue to face serious challenges with the Paycheck Protection Program (PPP), including the disbursement and use of the PPP loan proceeds.
The Members ask for new guidance in these areas of the program to ensure funds are better aligned with business re-openings, and note, “As small businesses work through the application system and plan their use of PPP funds in such a way as to satisfy the requirements for loan forgiveness under the program, we must ensure that proper guidance is promptly disseminated in order to allow for the most beneficial use of the program by the businesses it was meant to serve.”
“We appreciate Senator Van Hollen, Congressman Trone, and Congressman Raskin working on behalf of preserving jobs for small businesses in Maryland and the nation. Their understanding of the hardship caused by forced closure and the need to realign the CARES Act legislation with this new reality is critical for preserving these jobs and businesses going forward,” said Bob Giaimo, President/CEO and Founder of the Silver Diner restaurants.
“Maryland restaurants are the backbones of their communities, but a growing number of them are permanently closing their doors as this pandemic drags on. The PPP is a great initiative, but it doesn’t take into account our unique business model, and the challenging path we will have to reopen. We appreciate the leadership of Sen. Van Hollen and our congressional delegation to propose fixes to the PPP that would provide real relief to Maryland restaurants and our 11,000 employees,” said Marshall Weston Jr., President and CEO of the Restaurant Association of Maryland.
The full text of the letter is here and below.
Dear Mr. Carranza and Secretary Mnuchin,
Congress authorized the Paycheck Protection Program (PPP) in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial support and stability to small businesses affected by the COVID-19 pandemic. However, small businesses across Maryland have provided us with troubling reports regarding limitations on the disbursement and use of the PPP loan proceeds. We therefore request that your agencies coordinate to provide updated guidance allowing for delayed disbursement of funds and extended use of proceeds in order to better align with business re-openings. Specifically, we requesting the following:
- The Department of Treasury should issue revised guidance specifying that disbursement of PPP loan proceeds may be delayed. Currently, the Department of Treasury requires disbursement of those funds within 10 days after loan approval.
- The Department of Treasury should issue revised guidance clarifying that PPP loan proceeds may be used after June 30, 2020 and until a reasonable amount of time has passed after the end of state emergency restrictions to ensure that small businesses can get back up and running.
As small businesses work through the application system and plan their use of PPP funds in such a way as to satisfy the requirements for loan forgiveness under the program, we must ensure that proper guidance is promptly disseminated in order to allow for the most beneficial use of the program by the businesses it was meant to serve.
As Congress works to provide additional funding for the PPP program, we would appreciate your immediate consideration and urge that the requested guidance in this letter be given today as many businesses have already had their loans approved and are being asked to distribute their funds on a similar timeline.
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