Spanberger leads effort to allow small businesses to receive correct loan amounts following PPP changes
Rep. Abigail Spanberger, D-Va., co-led a bipartisan effort urging the administration to provide targeted assistance to Central Virginia small businesses and address disparities in the initial distribution of Paycheck Protection Program loans.
Under current guidance from the U.S. Small Business Administration and the U.S. Treasury Department, Central Virginia small businesses have a very limited window to seek an increase in their PPP loan amount through their lender. Due to the combination of this short window of time and the complexity of the PPP application process, many businesses — particularly sole proprietors and seasonal businesses — have received smaller PPP loans than they’re entitled to receive.
In a letter sent to U.S. Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza, Spanberger and her colleagues emphasized how business owners need a flexible timeframe to address disparities in their loan amounts. In their letter, they requested that additional, immediate flexibility be provided to PPP borrowers, given the significant legislative and regulatory changes that have occurred since the launch of PPP.
“Preventing businesses from accessing full PPP assistance will have significant consequences for America’s economic recovery,” said Spanberger and her colleagues in their letter. “For this reason, we ask that all available flexibility be provided to allow PPP borrowers to seek an increase in their loan amount if they are entitled to a greater level of assistance than they received. This commonsense step will help businesses and workers across the country endure the sustained impact of the COVID-19 pandemic.
Spanberger co-led the effort with U.S. Representatives John Katko (R-NY-24), Elise Stefanik (R-NY-21), and Xochitl Torres Small (D-NM-02). The letter was also signed by U.S Representatives Josh Gottheimer (D-NJ-05), Bryan Fitzpatrick (R-PA-01), Kendra Horn (D-OK-05), and Ed Case (D-HI-01).
Last month, President Trump signed legislation supported by Spanberger to provide greater flexibility to Central Virginia small businesses and restaurants as they look to use PPP loans to cover critical expenses and build plans for reopening.
Click here to read the full letter, and the full letter text is below.