The OSCC Board of Directors convened on Wednesday, April 8th to take stock of problems arising with the implementation of the Federal CARES legislation and other disaster relief and to make recommendations, based on available information (which is frequently changing), that would get federal resources to where they are needed most in the small business community.
To date, OSCC's recommendations are as follows:
- Restore the initial intent of the SBA Disaster Loan (EIDL) that every eligible small business be eligible for $10,000. Subsequent changes in rules appear to have limited eligibility to $1,000 per employee for a maximum of $10,000. This reduces critical assistance for our smaller businesses.
- Revise the rules of the Paycheck Protection Program (PPP) so that employers can demonstrate 8 weeks of restored payroll by September 30th. The current deadline of June 30th limits the ability of small business to receive forgiveness on their PPP loan because (1) there is uncertainty on when loan applications will be funded, and (2) some industries, such as the hospitality industry, have already laid off workers who are currently collecting enhanced federal and state unemployment benefits.
- 501(c)(6) non profit organizations should be added as employers that qualify for PPP loans. Current rules allow some non-profits to qualify for PPP loans (such as 501(c)(3) and 501(c)(19) organizations), but others, such as 501(c)(6) organizations, are excluded. Most Chambers of Commerce are 501(c)(6) organizations and have been critical in keeping their local business communities informed and helping them access benefits during the COVID-19 pandemic. Excluding these organizations is discriminatory.
More information will be posted as received from the OSCC.