U.S. Rep. Troy Balderson (R-OH) on April 16 sponsored a bipartisan bill to ensure that small businesses across the country have access to critical resources from another round of Paycheck Protection Program (PPP) funds that would help them keep their doors open during the ongoing COVID-19 pandemic.
Rep. Balderson introduced the PPP Second Draw Fairness Act, H.R. 2615, with original cosponsor U.S. Rep. Angie Craig (D-MN) to 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.
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, which added funds to the SBA Paycheck Protection Program and granted qualifying small businesses the opportunity to apply for a second draw of PPP funds, according to information provided by Rep. Balderson’s office.
However, through the implementation phase of this law, the Small Business Administration (SBA) determined that 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.
If enacted, H.R. 2615 would help rectify the SBA’s inability to establish a set of flexible parameters around the second draw of PPP funds, according to the congressman’s information.
“It is unfortunate that the SBA is unable to offer flexibility for American small business owners,” Rep. Balderson said. “Our bill sets the record straight and levels the playing field for small businesses to apply for the second draw of PPP funds.”