U.S. Rep. French Hill (R-AR) on April 15 introduced a bipartisan bill that would amend current law to allow small businesses that are eligible for the second-draw Paycheck Protection Program (PPP) to calculate their revenue based on a 90-day earning period rather than a set quarter calendar year.
“The PPP, created by the CARES Act, has been a necessary tool for struggling small businesses as they’ve weathered the unprecedented COVID-19 pandemic,” said Rep. Hill, noting that more than 14,000 businesses in his home state of Arkansas have received $4.6 billion through the program, which has helped save more than 375,000 jobs.
At the same time, however, some small businesses are currently at a disadvantage with how the program is set up because of how the program requires them to show a year-over-year revenue decrease, according to the congressman’s office.
“Small businesses are the lifeblood of Arkansas and I am honored to be able to advocate for them in Washington, D.C.,” added Rep. Hill, who sponsored the PPP Revenue Adjustment Calculation to Increase Capital Accessibility Long-term Act of 2021, H.R. 2582, also known as the PRACTICAL Act, with original cosponsor U.S. Rep. Chrissy Houlahan (D-PA).
If enacted, H.R. 2582 would amend the definition of eligible entity in the second draw loan program of the Small Business Administration, according to the text of the bill.
H.R. 2582 is endorsed by the National Federation of Independent Business and has been referred to the U.S. House Small Business Committee for consideration.