Luria announces new rules to allow seasonal businesses to access PPP loans

May 2, 2020
 |
Congresswoman Elaine Luria

Congresswoman Elaine Luria announced Friday that the rules have been changed to allow seasonal businesses to access PPP loans.

The PPP provides loans to small businesses that have been harmed by the coronavirus pandemic. Loans under this program may be used to cover payroll costs, healthcare benefits, mortgage interest payments, rent, utilities, and other interest payments. Under the CARES Act, the cost of eight weeks of payroll and operating expenses can be fully forgiven from a PPP loan provided criteria are met.

Previously, businesses could only base the size of their PPP loan off revenues from late winter and spring. I heard from many local seasonal small businesses that this requirement meant that the loan would not be enough to recover losses from their peak season. In response, on April 23 I called for reforms to the PPP to give seasonal businesses more flexibility in choosing their loan base period.

On April 28, the Department of Treasury issued a new rule for the PPP to assist seasonal businesses. Per this new rule, seasonal businesses can choose any twelve-week period between May 1 and September 15, 2019, to determine their PPP loan size. This change ensures seasonal businesses that see their revenues peak in the summer can receive additional assistance during this crisis.

Businesses may apply for a PPP loan through their local SBA-approved lender.

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Coldwell Banker Harbour Realty

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