Business Orgs Ask for More Inclusive Second Round of PPP Loans 

August 5, 2020

The Honorable Mitch McConnell
Majority Leader
U.S. Senate

The Honorable Charles E. Schumer
Minority Leader
U.S. Senate

The Honorable Marco Rubio
Chairman, Committee on Small Business and Entrepreneurship
U.S. Senate

The Honorable Ben Cardin
Ranking Member, Committee on Small Business and Entrepreneurship
U.S. Senate

Dear Leaders McConnell and Schumer and Senators Rubio and Cardin:

The undersigned organizations represent small businesses in every sector of the economy, and we are writing to express our strong support for the Paycheck Protection Program (PPP). The program has served as lifeblood to millions of small businesses during this historically challenging economic period. We appreciate that you are now considering legislation, the recently introduced “Continuing Small Business Recovery and Paycheck Protection Program (CSBRPPP) Act,” that would potentially offer a second PPP loan to qualifying small businesses. We urge you, however, to expand eligibility for the proposed PPP second draw to a greater share of struggling small businesses by lowering the gross revenue reduction requirement from 50 percent.

We truly appreciate your leadership in Congress's historic response to the COVID-19 crisis. The PPP, in conjunction with increased support of our health care system, has enabled many small businesses to remain operational and retain employees, despite experiencing precipitous drops in revenue. However, the future for these same small businesses is extremely unclear. We are pleased there is consensus in the U.S. Senate to provide additional relief options to small businesses that need it the most. While we support inclusion of a revenue decline threshold for additional relief, our members' experience informs us that the 50 percent decline as proposed in the CSBRPPP Act is simply too high.

Many small businesses operate with slim profit margins in a normal economy. For them, even a revenue decline of 20 percent or greater could mean the difference between staying in business or closing. For their employees, such a revenue decline could mean the difference between remaining at work and receiving benefits or losing their jobs.

For businesses with revenue declines of 20 percent or greater, but less than 50 percent — businesses currently excluded from the proposed CSBRPP Act — broad access to a second round of PPP funding, and the new, long-term, low-interest loan program, may prove the lifeline they need to stay afloat throughout the economic recovery. This second round of funding and access to these long-term loans is akin to a targeted investment from the federal government into the very businesses where it can make the most difference — many of whom benefited from PPP in the first place, but now, through no fault of their own, remain closed or forced to operate at reduced capacity to protect the safety of their employees, customers and the general public.

In summary, we urge you to expand small business access to the proposed PPP second draw by changing the eligibility requirement that businesses must demonstrate a gross revenue reduction of at least 50 percent. America's small businesses have borne a heavy burden during the COVID-19 pandemic. These businesses have navigated an unprecedented landscape to continue to serve their customers, employees, and communities in a clean, safe, and compliant manner throughout this historic period. On behalf of our small business members, we thank you for your efforts, and encourage you to expand access to relief measures to further strengthen our national economic recovery.

Sincerely,

AICC, The Independent Packaging Association
AMT — The Association For Manufacturing Technology
Aeronautical Repair Station Association
Agricultural Retailers Association
Air Conditioning Contractors of America
America's Health Insurance Plans
American Bakers Association
American Beverage Licensees
American Council of Engineering Companies
American Farm Bureau Federation
American Home Furnishings Alliance
American Institute of Architects
American Lighting Association
American Mold Builders Association
American Rental Association
American Road & Transportation Builders Association
American Subcontractors Association
American Supply Association
American Veterinary Medical Association
Asian American Hotel Owners Association
Associated Builders and Contractors
Associated Equipment Distributors
Associated General Contractors
Association of the Wall and Ceiling Industry
Auto Care Association
Coalition of Franchisee Associations
Commercial Food Equipment Service Association
Commercial Vehicle Solutions Network Association
Convenience Distribution Association
DHI — Door Security and Safety Professionals
The Design-Build Institute of America
Electronics Representatives Association
Family Enterprise USA
Foodservice Equipment Distributors Association
Franchise Business Services
Global Business Travel Association
Global Cold Chain Alliance
Home Care Association of America
Home Furnishings Association
Independent Office Products & Furniture Dealers Alliance
Independent Electrical Contractors
Independent Insurance Agents & Brokers of America
Industrial Fasteners Institute
International Council of Shopping Centers
International Foodservice Distributors Association
International Franchise Association
International Housewares Association
Job Creators Network
MSCI, Metals Service Center Institute
Manufacturer & Business Association
Marine Retailers Association of the Americas
NFIB
National Apartment Association
National Association of Broadcasters
National Association of Electrical Distributors
National Association of Home Builders
National Association of Professional Employer Organizations
National Association of the Remodeling Industry
National Association for the Self-Employed
National Association of Trailer Manufacturers
National Association of Truckstop Operators
National Association of Wholesaler-Distributors
National Association of Women Business Owners
National Automatic Merchandising Association
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 Independent Automobile Dealers Association
National Insulation Association
National Marine Distributors Association
National Multifamily Housing Council
National Office Products Alliance
National Propane Gas Association
National Ready Mixed Concrete Association
National Restaurant Association
National Roofing Contractors Association
National Retail Federation
National Small Business Association
National Tooling and Machining Association
National Waste & Recycling Association
North American Association of Food Equipment Manufacturers
North American Die Casting Association
Office Furniture Dealers Alliance
Out of Home Advertising Association of America
Outdoor Industry Association
Outdoor Power Equipment and Engine Service Association
Pet Industry Distributors Association
Petroleum Equipment Institute
Petroleum Marketers Association of America
Precision Machined Products Association
Precision Metalforming Association
PRINTING United Alliance
Professional Beauty Association
Promotional Products Association International
The Real Estate Roundtable
Retail Bakers of America
Service Station Dealers of America and Allied Trades
Signatory Wall and Ceiling Contractors Alliance
The Small Business Council of America
Small Business & Entrepreneurship Council
The Small Business Legislative Council
Small Business Majority
Small Business Roundtable
Spray Polyurethane Foam Alliance
Tile Roofing Industry Alliance
Tire Industry Association
The Transportation Alliance
Truck Renting and Leasing Association
Textile Care Allied Trades Association
United Fresh Produce Association
U.S. Chamber of Commerce
U.S. Travel Association
Washington Retail Association
Wine & Spirits Wholesalers of America
Workplace Policy Institute

CC:
The Honorable Susan Collins
The Honorable Jeanne Shaheen