Legislation that would ensure farmers, ranchers and self-employed small business owners can receive their full Paycheck Protection Program forgivable loan amount was introduced this week in the House of Representatives.
Reps. Abigail Spanberger (D-VA-07) and Ashley Hinson (R-IA-01) introduced the Paycheck Protection Program (PPP) Equity Act, which has been endorsed by the National Federation of Independent Businesses.
Previous modifications made by Congress and the Small Business Administration to the PPP program allowed farmers, ranchers, and certain small businesses to re-calculate their loans based on gross income rather than net profits but had limitations on retroactivity.
The PPP Equity Act would fix this disparity, allowing these groups to retroactively recalculate to receive the full loan amount available, regardless of their previous loan status.
“I know firsthand how PPP has been a lifeline for many businesses in Central Virginia. As we work together to rebuild our economy, I’m committed to finding new ways to cut red tape and ensure small businesses, sole proprietors, and farms have access to the PPP funds they deserve,” said Spanberger. “This bipartisan legislation makes a commonsense fix to the program that would allow eligible, local businesses to recalculate their loan amount and receive the funds to which they’re entitled. I’m glad to introduce the PPP Equity Act with Congresswoman Hinson and to address an ongoing disparity in our communities.”
“I have heard from many Iowa small businesses and farmers who have been unable to get their full PPP loans due to a bureaucratic oversight. This bipartisan solution will ensure that Iowans have the resources they need to persevere through this pandemic,” said Hinson.
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