Bipartisan Duo Intervene with Legislation Enhancing PPP Flexibility for Small Businesses

Press Release

Congressman Troy Balderson (OH-12) today introduced the PPP Second Draw Fairness Act with Congresswoman Angie Craig (MN-02) in an effort to rectify the Small Business Administration's inability to establish a set of flexible parameters around the second draw of Paycheck Protection Program funds.

As part of the Consolidated Appropriations Act of 2021 (H.R. 133), Congress passed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act in December 2020. This legislation added additional funds to the SBA Paycheck Protection Program, while also granting qualifying small businesses the opportunity to apply for a second draw of PPP funds. However, through the implementation phase of this law, the SBA determined a qualifying business must have experienced at least a 25 percent reduction of gross receipts between corresponding calendar quarters in 2020 when compared to 2019.

"It is unfortunate that the SBA is unable to offer flexibility for American small business owners," said Representative Balderson. "Our bill sets the record straight and levels the playing field for small businesses to apply for the second draw of PPP funds."

"Small businesses are the backbone of our economy, employing millions of Americans and keeping communities across the nation flourishing and vibrant," said Representative Craig. "But over the past year, these businesses have faced hurdle after hurdle as they've weathered the impact of the COVID-19 pandemic. While we can finally see the light at the end of the tunnel, the economic challenges of this crisis are far from over -- especially for our Main Street businesses. Today, I'm proud to join Rep. Balderson in introducing bipartisan legislation to ensure that small businesses in Minnesota and across the country have access to the resources necessary to keep their doors open as we continue to emerge from this difficult chapter."

Government-mandated COVID-19 shutdowns were imposed in the middle of the second quarter -- meaning most economic losses spanned the second and third quarters.

This bipartisan legislation would expand the PPP second draw eligibility requirements for American small businesses to those that experienced at least a 25 percent reduction of gross receipts between corresponding calendar quarters "or" any consecutive 90-day period in 2020 when compared to the same period in 2019.

BACKGROUND

Balderson and Craig previously teamed up to introduce the PPP Extension Act (H.R. 7437) which extended the widely popular Paycheck Protection Program after the program's authorization lapsed in the middle of last summer. That legislation was signed into law by President Trump on July 4, 2020.

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