PPA’s Government Affairs Team lobbied on Capitol Hill last week in an effort to permit retroactive calculations under the Payment Protection Program (PPP).
Last month, the Small Business Administration (SBA) devised a new method of calculation for sole proprietors resulting in substantially larger forgivable loan amounts, but only sole proprietors that did not receive a first or second loan qualified for the new calculation. We sought to correct this inequity by sending this letter to Capitol Hill leadership.
Just this week we learned that bipartisan legislation was introduced in the Senate by Senator Ben Cardin (D-Md.), Chairman of the Senate Small Business Committee, which allows sole proprietors to receive retroactive PPP loans based on their gross income instead of their net income. PPA is supportive of this legislation under the condition that it gives the appropriate time necessary for sole proprietors to obtain a retroactive loan and appropriate funding is provided.
We look forward to the development of this bill and hope that all sole proprietors will be able to take advantage of this necessary correction.