The American Foundry Society, along with a coalition of more than 130 small business organizations, is calling on Congress to make critical changes to the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP) so small manufacturers, including foundries, have more flexibility and the opportunity to remain operational throughout COVID-19.
In the coalition letter sent to Congress and key Trump administration officials on May 21, the groups requested emergency legislative and administrative action to make the following key fixes: (1) repeal the PPP 75%-25% rule, (2) extend the eight-week period for purposes of calculating loan forgiveness, and (3) extend the June 30 safe harbor date for rehiring and restoration of pay. These steps would help ensure that more small businesses remain in operation.
A number of AFS members report that the current PPP requirements are challenging to either comply with or to meet in order to qualify for maximum loan forgiveness, and they have said using the loan within the eight-week window is very difficult.
What’s next in Congress? The U.S. Senate started discussing legislation on PPP fixes this week, and the House is expected to be in session next week to consider the AFS-supported Paycheck Protection Flexibility Act, which makes important fixes to the PPP, including extending the covered-period window of eight weeks and the split on what the funds can be used on. The proposed changes have bipartisan support.
Copy this html code to your website/blog to embed this press release.