Letter to House and Senate Leadership to Provide Second Paycheck Protection Program (PPP) Loan

Tuesday, December 1, 2020 - 9:30am

December 1, 2020

 

The Honorable Nancy Pelosi

Speaker

U.S. House of Representatives

Washington, D.C. 20515

 

The Honorable Mitch McConnell

Majority Leader United States Senate Washington, D.C. 20510

 

The Honorable Kevin McCarthy

Republican Leader

U.S. House of Representatives

Washington, D.C. 20515

 

The Honorable Charles E. Schumer

Democratic Leader United States Senate Washington, D.C. 20510

 

 

Dear Speaker Pelosi and Leaders McConnell, Schumer, and McCarthy:

 

The undersigned organizations represent small businesses in every sector of the economy, and we urge swift action this Congress to support America’s small businesses with much needed additional relief. Our small business members are desperately struggling to survive the COVID-

19 pandemic and are facing an uncertain winter marketplace. Thus, we are specifically asking

you to expeditiously enact legislation which would allow businesses to access a second Paycheck

Protection Program (PPP) loan with tax deductibility and streamlined forgiveness.

 

First, we urge support for a PPP second draw. The PPP was a historically successful relief measure, and we commend you for its formulation and speed to market. But it is now clear that nearly all PPP proceeds have been used: according to the NFIB Research Center, 90% of PPP borrowers have spent their entire PPP loan, and they face difficult choices every day the pandemic continues. A recent survey of the hotel industry found that 98% would use a second PPP loan and 71% percent said they feared they would be forced to close within the next 6 months without additional federal relief. Furthermore, the recent spike in COVID-19 cases and resulting government shutdowns make it a moral imperative that the federal government provide additional relief to help small businesses survive these shutdowns.

 

The PPP was uniquely crafted to allow small businesses fast access to capital at the outset of this crisis, and it remains the best solution to provide relief a second time. PPP should also be expanded to small business that are structured as 501(c)6 or quasigovernmental destination marketing organizations (DMOs) who were left out of PPP. As our country returns to normal and restarts business and leisure travel, these organizations will be vital economic redevelopment drivers across the country – but they must first survive the pandemic.

 

We also urge Congress to lighten the tax burden of existing PPP recipients in two ways. Our members call on Congress to enact full tax deductibility for PPP loans, which is consistent with congressional intent. There are multiple bipartisan bills that would clarify PPP recipients that secure forgiveness can deduct business expenses paid by the PPP loan from their taxes. Congress should also simplify forgiveness for the smallest PPP borrowers. As you know, the smallest businesses received the smallest PPP loans, and thus we hope Congress can relieve the loan forgiveness burden for recipients of loans totaling $150,000 or less by including the “Paycheck

 

Protection Small Business Forgiveness Act” (S. 4117/H.R. 7777) in any relief measure that advances.

 

Small businesses are struggling throughout the country during this unprecedented health and economic crisis. With the election now behind us, our members are desperately calling on Congress to act. More than $130 billion is still available in the PPP loan program, yet small businesses and their employees are unable to access those critical funds because of congressional inaction. We urge you to provide a lifeline for small businesses facing insolvency, closure, and layoffs from what has become a prolonged economic crisis due to the pandemic.

 

Thank you for your consideration. Sincerely,

AICC, The Independent Packaging Association

Academy of General Dentistry

Agricultural Retailers Association

Air Conditioning Contractors of America American Association of Franchisees and Dealers American Bakers Association

American Beverage Licensees American Foundry Society American Frozen Food Institute

American Hotel & Lodging Association

American Institute of Architects

American Road & Transportation Builders Association

American Society of Travel Advisors American Staffing Association American Trucking Associations

American Veterinary Medical Association Asian American Hotel Owners Association Associated Builders and Contractors Associated Equipment Distributors Associated General Contractors of America Association of the Wall and Ceiling Industry Auto Care Association

CAWA – Representing the Automotive Parts Industry Commercial Food Equipment Service Association Consumer Bankers Association

The Design-Build Institute of America

Energy Marketers of America

Equipment Leasing and Finance Association

Family Enterprise USA

Foodservice Equipment Distributors Association

Franchise Business Services

 

Global Business Travel Association

Global Cold Chain Alliance

ISSA – The Worldwide Cleaning Industry Association

Independent Electrical Contractors

Independent Insurance Agents & Brokers of America Independent Office Products & Furniture Dealers Alliance Industrial Fasteners Institute

International Council of Shopping Centers International Foodservice Distributors Association International Franchise Association

International Warehouse Logistics Association

Job Creators Network Latino Hotel Association Manufacturer & Business Association

Marine Retailers Association of the Americas

NACS NFIB

National Association of Black Hotel Owners, Operators and Developers

National Association of Electrical Distributors National Association of Home Builders National Association of Manufacturers

National Association of the Remodeling Industry

National Association of Professional Employer Organizations

National Association of Trailer Manufacturers National Association of Truckstop Operators National Association of Wholesaler-Distributors National Community Pharmacists Association National Cotton Council

National Council of Chain Restaurants

National Electrical Contractors Association

National Electrical Manufacturers Representatives Association

National Fastener Distributors Association

National Fisheries Institute

National Franchisee Association

National Marine Distributors Association National Office Products Alliance National Pawnbrokers Association

National Ready Mixed Concrete Association

National Restaurant Association

National Retail Federation

National Stone, Sand and Gravel Association National Waste & Recycling Association Nebraska Retail Federation

New Hampshire Retail Association

North American Association of Food Equipment Manufacturers

Office Furniture Dealers Alliance

 

Outdoor Power Equipment and Engine Service Association

The Payroll Group

Pet Industry Distributors Association Petroleum Equipment Institute Professional Beauty Association Retail Association of Maine

Retail Bakers of America

Small Business Council of America

Small Business & Entrepreneurship Council

Small Business Legislative Council

Small Business Majority Society of American Florists Tire Industry Association The Transportation Alliance U.S. Chamber of Commerce U.S. Travel Association

United Fresh Produce Association

Washington Retail Association

Wine & Spirits Wholesalers of America

 

 

 

cc: The Honorable Marco Rubio

The Honorable Ben Cardin

The Honorable Nydia Velazquez

The Honorable Steve Chabot