ASAE Urges Congress to Replenish PPP Funds
The funds are quickly being depleted
The American Society of Association Executives (ASAE) delivered a letter to House and Senate Small Business Committee leaders this week urging lawmakers to provide additional funding for the Paycheck Protection Program (PPP), which will likely be depleted by mid-April if loan applications continue at the current pace.
The PPP has been a lifeline for small businesses, associations and nonprofit organizations struggling to meet payroll and other basic operating costs during the prolonged pandemic. Last month, Congress overwhelmingly approved legislation extending the application deadline for PPP loans from March 31 to May 31 – a move applauded by ASAE – but the Small Business Administration (SBA) has indicated that funds are dwindling fast and many eligible and deserving employers could soon be unable to access the program unless Congress acts.
In its April 8 letter to Congress, ASAE thanked lawmakers for expanding PPP access to include 501(c)(6) associations and most of the broader 501(c) community but noted that initial confusion about eligibility requirements for 501(c)(6) organizations caused significant delays for many applicants – both to complete their paperwork and to receive funds. Further changes led to more confusion. In February, the Biden administration announced updates to PPP eligibility, including a two-week priority application window for businesses with fewer than 20 employees. This helped many of the smallest businesses get access to the program, but the timing of the new rules gave businesses little time to take advantage of them.
Although recent reports indicate there is roughly $50 billion left in the PPP, the SBA reportedly already has about 190,000 loans that are being held to address outstanding application issues.
“Securing a first or second-draw loan may still be impossible for much of our community should PPP’s funding deplete in the coming days,” ASAE said. “Therefore, ASAE requests Congress to appropriate additional funds to ensure that the program can provide loans to all eligible and deserving employers through the May 31, 2021 authorization period.”
This article was provided to OSAE by ASAE's Power of A and Inroads.