Paycheck Protection Program Relief Efforts
RAM continues to receive questions from members regarding loan forgiveness under the Paycheck Protection Program. In particular, members are concerned with the lack of clear guidance on how to determine whether borrowed funds will have to be repaid as a loan or forgiven as a grant. In addition, many members still unable to resume operations due to current Government shutdown orders are also concerned about their inability to meet the general forgiveness requirements that are currently known.
RAM has remained in contact with our federal counterparts at the National Retail Federation, as well as state and federal policymakers, to advocate for relief in this area. Recent reports out of Washington indicate that a number of legislative proposals, which aim to overhaul the PPP and address many of the concerns voiced by PPP borrowers, have been introduced in Congress. The President has voiced his support for making such changes.While the final details are subject to ongoing negotiations, loan forgiveness issues being considered include extension of the 8-week covered period for making forgiveness eligible expenses, elimination of the restriction limiting non-payroll expenses to 25% of the loan proceeds, and an extension of the rehiring deadline.
RAM will continue to monitor the progress of these efforts and update members as more information becomes available. In the meantime, members are strongly urged to review the SBA’s updated Paycheck Protection Program FAQs and the recently released Loan Forgiveness Application.