PPP for Farmers, Ranchers, and the Self-Employed
Tax & AccountingApril 23, 2021

Bi-partisan Group of Senators Propose Measure to Increase PPP Loan Grants for Self-employed

Bi-partisan Group of Senators Propose Measure to Increase PPP Loan Grants for Self-employed

A bipartisan group of senators introduced a bill on Tuesday that would allow the self-employed to qualify for additional funds under the Paycheck Protection Program (PPP). The bill does not provide additional funding even as the current remaining $44B is expected to run out in a matter of weeks. In addition, it does not extend the May 31 deadline for PPP loan applications.

The bill’s primary sponsor, Senator Ben Cardin indicated that the bill must pass as quickly as possible for the targeted small businesses to have time to secure the aid before the May 31 deadline.

The measure is intended to give the self-employed, including farmers and ranchers who had previously received a PPP loan, the opportunity to retroactively increase the loan amounts they had already received. The Small Business Association (SBA) would establish a new process for businesses to get a recalculation to determine the additional amount they would receive under the new rules.

The Cardin bill faces significant challenges: passing the legislation in time for businesses to apply before May 31, and for the SBA to create new processes and consider and recalculate new loan amounts in a reasonable amount of time. The SBA is already facing significant challenges in administering the PPP under existing rules, in addition to the business-rescue programs for live performance venues (already delayed because of technical difficulties) and restaurants.

A two-page summary of the bill can be found here.

 

By Mark Friedlich

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Mark Friedlich
Author at Tax & Accounting
Mark Friedlich, a CPA & tax lawyer, is the principal international & corporate indirect taxation analyst for Wolters Kluwer Tax & Accounting. He is a member of the U.S. Senate Finance Committee’s Chief Tax Counsel’s Advisory Board, advisor to 14 state taxing authorities, and a member of the American Bar Association’s Tax Section and AICPA’s Tax Section leadership teams. Prior to joining Wolters Kluwer he was a Managing Tax Partner at PricewaterhouseCoopers.