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24 Week PPP Covered Period Legislation Introduced

December 14,2021

We’re very happy to report that working with New York’s own Congressmember Jerry Nadler, he introduced the Low-Revenue Recipient Paycheck Protection Program (PPP) Relief Act. If enacted, it will allow round 1 PPP recipients to shift the covered period of the loan to gain loan forgiveness if the small business was not in operation between April 1, 2020, and December 31, 2020, or saw a revenue reduction during that period of at least 80 percent from 2019. 

The NYC Hospitality Alliance has been fighting hard to support restaurants and bars that were unable to receive forgiveness on their round 1 PPP loans because lack of customers and severe government mandates. We will now advocate for members of Congress around the country to support this important legislation, and we’ll keep you up to date as it advances, because we don’t want the PPP to result in more debt for our industry by no fault of their own.

The following is Congressmembers Nadler’s press release announcing the legislation, which the NYC Hospitality Alliance is quoted in:

Representative Nadler Introduces Bill to Deliver Additional Flexibility to Paycheck Protection Program Recipients Severely Impacted by the COVID-19 Pandemic  

Washington, D.C. - Today, Representative Jerrold Nadler (NY-10), Chairman of the House Judiciary Committee, introduced the Low-Revenue Recipient Paycheck Protection Program Relief Act. This legislation will ensure that the hardest-hit Paycheck Protection Program (PPP) recipients are eligible for loan forgiveness that they would otherwise be excluded from due to prolonged pandemic closures and restrictions.

“PPP was supposed to provide a lifeline to our nation’s small businesses and millions of people who work at them,” said Representative Nadler. “Unfortunately, the one-size-fits-all nature of PPP has proven to be unworkable for thousands of businesses that were forced to be closed for much longer than originally expected and whose customers have not been quick to return. The program’s primary benefit–the ability to receive loan forgiveness on eligible expenses like payroll over an 8-to-24-week period–is out of reach for businesses in places like Times Square that had to remain closed for over 15 months. I am proud to introduce this legislation to strengthen PPP’s equity and ensure more of our hardest-hit small businesses are eligible for loan forgiveness.”

“Restaurants around the nation were devastated by the Covid-19 pandemic, and while the Paycheck Protection Program provided vital support to many small businesses and workers, the way loan forgiveness was structured unintentionally resulted in more crushing debt for too many restaurants and other small businesses, instead of the job saving relief Congress intended. We commend Congressman Nadler for introducing the Low-Revenue Recipient Paycheck Protection Program Relief Act, which will better align loan forgiveness with the challenges that restaurants already have and continue to experience in hard hit neighborhoods around the country. This legislation will save many of America’s restaurants from more devastating debt, while saving jobs and local businesses.” Andrew Rigie, executive director, NYC Hospitality Alliance

The Low-Revenue Recipient Paycheck Protection Program Relief Act will allow PPP recipients to shift the covered period of the loan to gain loan forgiveness if the small business was not in operation between April 1, 2020, and December 31, 2020, or saw a revenue reduction during that period of at least 80 percent from 2019. 

Original cosponsors of the bill include Representatives Eleanor Holmes Norton (DC-At Large) and Carolyn B. Maloney (NY-12).