Policy Issues

Coalition Requests PPP Reforms — Including Elimination of “75-25 Rule”

May 21, 2020

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The Real Estate Roundtable along with 132 organizations wrote to Speaker Pelosi, Leader McConnell, Leader McCarthy, Leader Schumer, Secretary Mnuchin, and Administrator Carranza requesting emergency legislative and administrative action to: 

(1) repeal the Paycheck Protection Program’s (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 conform the PPP with the reality of the gradual reopening now occurring across the United States and would help ensure that more small businesses remain in operation.

These three modest changes would help ensure that the liquidity provided through the PPP can be deployed in a manner that is most likely to allow a small business to remain operational. Specifically, these changes would help small business owners who need capital for overdue rent payments, the re-start of vendor contracts, and other necessary expenses.