Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 27, 2020 12:57 PM

TIA, SEMA among trade groups asking for changes to small-business loan program

Audrey LaForest, Automotive News
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    American Chamber of Commerce image

    WASHINGTON — A broad coalition of national trade groups is urging congressional leaders to make changes to the Small Business Administration's Paycheck Protection Program that would provide more flexibility to participating small businesses.

    In a joint letter sent May 21, the groups called for "emergency legislative and administrative action" to repeal the program's requirement that 75% of the loan be used to cover payroll costs and 25% be used to cover mortgage, rent and utilities during an eight-week period.

    Additionally, the groups — including the Tire Industry Association, Specialty Equipment Market Association, Motor & Equipment Market Association and National Automobile Dealers Association — are asking for an extension of the eight-week period that the funds must be spent to qualify for loan forgiveness and for an extension of the June 30 safe-harbor date for rehiring workers and restoring salary levels.

    "These steps would conform the PPP with the reality of the gradual reopening now occurring across the United States and would help ensure that more small businesses remain in operation," the groups said in the letter.

    The House is expected to vote this week on a bipartisan bill that would allow loan forgiveness to extend beyond the eight-week period and enable businesses to have the flexibility to spread loan funds over the full course of the COVID-19 crisis. It also would get rid of restrictions limiting nonpayroll expenses to 25% of the loan proceeds and would allow businesses that make a good-faith effort to rehire employees, but are unable to, to still receive loan forgiveness.

    The Senate last week failed to adopt a similar bill.

    "The current rules made sense when the program was created, and it was anticipated that stay-at-home orders would last only a few weeks," the groups said.

    "However, their implementation in the current environment is making it harder for small businesses to survive. Small businesses that close permanently will never be able to rehire their employees."

    The PPP is part of the $2.2 trillion coronavirus relief package known as the Coronavirus Aid, Relief and Economic Security Act. The program, as of May 23, had approved approximately 4.4 million loans, totaling more than $511 billion from 5,511 lending institutions.

    The American International Automobile Dealers Association told Automotive News — a sister publication of Tire BUsiness — that as the COVID-19 crisis stretches into the summer months, "auto retailers need flexibility in order to continue to pay their employees, meet operating expenses and serve their communities.

    "We are asking Congress, the Small Business Administration and the Department of Treasury to amend PPP rules to allow participants to adjust to current market conditions. These relatively small changes would make a big difference in how auto retailers in particular are able to comply with an orderly, phased reopening."

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Icahn-owned Auto Plus files for Chapter 11 protection
    2
    Truck sector leads U.S. tire market; consumer down
    3
    Goodyear to trim jobs amid 'uncertain' economic outlook
    4
    SEMA urges USTR to end section 301 tariffs on Chinese goods
    5
    Gills Point S acquires Hogan Tires of Maine
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION