Print Page   |   Contact Us   |   Sign In   |   Join
Government Relations Update
Share |

NAGGL SENDS COALITION LETTER TO THE HILL OPPOSING RETURNING REMAINING SECTION 1112 FUNDING TO THE TREASURY WITHOUT HELPING MORE SMALL BUSINESS BORROWERS
___

(September 10) As a follow up to NAGGL’s last GR post on the lack of progress in Congress to negotiate the next relief package, we wanted to quickly follow up with a few updates:

Unfortunately, substantive negotiations continue to be stalled as Democrats and Republicans remain in vastly different places on topline spending priorities. 

This week, the Senate GOP put forward a Targeted Relief Package that is a slimmed down version of previous proposals in terms of both cost and policy. Included in this package is a second draw on PPP, a strengthened hold harmless, and streamlined forgiveness. See attached language and summary provided by Senate Republicans. Earlier today, the Senate held a procedural vote on this bill, but it failed to get the 60 votes necessary to allow it to move forward.

While the latest Senate GOP Targeted Relief Package did not go anywhere, NAGGL does want to flag one key element of concern that was in the package: a rescission of funding for the Section 1112 payments. The bill would rescind any remaining unobligated funds for the Section 1112 payments and return those funds to the Treasury. Unfortunately, this goes in the exact opposite direction that NAGGL and many other small business advocacy organizations have been advocating. NAGGL has and will continue to push for extensions of Section 1112 payments both in terms of extending the date by which new borrowers would be eligible to receive payments and by extending the number of months of payments for each status of borrower. These extensions would come at no cost; rather they would simply utilize the unused funding already allocated for Section 1112 payments.

To that end, NAGGL spearheaded efforts to send a coalition letter to Senate and House Leadership and other key Members of Congress expressing opposition to rescinding Section 1112 funding in any relief package, and instead, urging Congress to extend Section 1112 payments for borrowers.

There were some helpful provisions included in this recent proposal, such as streamlined forgiveness. However, in addition to our concern about the rescission of Section 1112 funding, we also believe there should be other common-sense provisions included in a fourth package that were not included in this latest proposal. These include comprehensive changes to the PPP, technical fixes to the CARES Act, and enhancement provisions for SBA’s loan programs. But it was critical to focus on the rescission of Section 1112 funds in our most recent letter to Congress because that provision remains one of the most stabilizing measures Congress has enacted thus far in our opinion. NAGGL has comprehensively outlined all of the changes we are actively advocating for in a past post that you can find here.

Thanks for all you do!

All rights in letters and unsolicited editorial or graphic material will be treated as unconditionally assigned for publication and copyright purposes and subject to NAGGL's editorial comment. © 2020 All rights reserved. Nothing may be reprinted in whole or part without written permission from NAGGL.

Keyword Search
Sign In


Calendar

10/13/2020 » 10/15/2020
Virtual Understanding the SOP 50 10

10/27/2020 » 10/29/2020
2020 Virtual Annual Conference