Rush Calls on Mnuchin, Carranza to Clarify SBA Rules, Ensure More Small Businesses are Eligible for Paycheck Protection Program
WASHINGTON — Today, U.S. Representative Bobby L. Rush (D-Ill.) called on U.S. Department of Treasury Secretary Steven Mnuchin and U.S. Small Business Administrator Jovita Carranza to clarify current Small Business Administration (SBA) requirements to ensure more small businesses are eligible for loan programs established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“I have heard from small business owners in my district who are concerned about their financial stability if they are excluded from the SBA Paycheck Protection Program due to antiquated SBA rules,” said Rep. Rush. “One of the many reasons I voted for the CARES Act was because it is specifically designed to help small businesses remain financially viable and keep their staff employed during these unprecedented times.
“That is why it is paramount that the administration quickly and decisively clarify its rules to ensure that all small businesses, including those with equity investors, are able to compete for the forgivable loans provided by this historic legislation.”
Under the current SBA “Affiliation Rules,” businesses may be required to aggregate the employees of unrelated companies in which their investors are affiliated and count them in their employee count, pushing these businesses above the employee size threshold for certain small business loans created by the CARES Act, such as the Paycheck Protection Program (PPP).
PPP makes available nearly $350 billion in forgivable loans to small businesses to be used towards toward employee retention and other related expenses.
A copy of Rep. Rush’s letter can be found here.