Bipartisan Group of 21 Senators Sends Letter to Mnuchin Urging Treasury to Raise PPP Non-Payroll Forgiveness Cap
Senators John Cornyn (R-TX) and Robert Menendez (D-NJ) lead a letter signed by 21 bipartisan Senators urging Treasury Secretary Steve Mnuchin and Small Business Administrator Jovita Carranza to raise the Paycheck Protection Program’s (PPP) non-payroll forgiveness cap from 25 percent to 50 percent. As you’ll recall, the PPP provides loan forgiveness if small businesses direct 75 percent of the loan to maintain payroll and use the other 25 percent on non-payroll expenses. In this new letter, the Senators say the “25 percent threshold is problematic for several business sectors, especially those whose mortgage, rent, or utility payments constitute a large portion of fixed monthly expenses.” As a result, the letter requests that Mnuchin and Carranza “exercise the power of [their] respective offices” to “ensure all business sectors are able to spend at least 50 percent of the loan” on non-payroll expenses and remain eligible for loan forgiveness.
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