Representatives John Curtis (R-UT) and Chip Roy (R-TX) sent a letter regarding the Paycheck Protection Program (PPP) to the US Department of the Treasury Secretary Steven Mnuchin, advocating for small businesses back home that are in desperate need of common-sense relief.
In the letter, the Congressman urge the Treasury Department to reconsider the recent decision to treat Paycheck Protection Program (PPP) expenses as income, effectively surprising small businesses with a tax bill as punishment for taking government assistance:
“Treasury’s decision to treat eligible PPP expenses as income is especially problematic because small businesses throughout many industries continue to struggle to survive. Without sustainable revenue streams, especially as we enter the winter months, businesses could default on these tax payments or permanently close their doors. For these reasons, we urge you to reverse your decision and to work with Congress to resolve this ongoing issue.”
For months, Rep. Curtis has introduced and suggested various proposals to help the PPP funding go further-including the bipartisan Paycheck Protection Program Small Business Enhancement Act to amend the Paycheck Protection Program (PPP). The Coronavirus Aid, Relief, and Economic Security Act’s (CARES Act) PPP helped deliver important tools to temporarily support millions of struggling businesses across the country and with the enhancements in the his bill, the Paycheck Protection Program Small Business Enhancement Act, small businesses will be able to receive even more aid.
The full letter, as sent to the Treasury, is below: (click for PDF)
Dear Secretary Mnuchin,
We write to you today to express our concern about the Department of the Treasury’s recent decision to treat Paycheck Protection Program (PPP) expenses as income, effectively surprising small businesses with a tax bill as punishment for taking government assistance. This comes with significant unintended consequences and could be taken by many that the federal government cannot be trusted to provide help without strings attached in a time of great need such as a global pandemic.
PPP loans were designed to provide immediate help to struggling small businesses during the early days of the COVID-19 outbreak. Business owners turned to these forgivable loans to avoid shutting their doors, and therefore keep their staffs employed, while the country considered options to safely respond to this public health threat.
Treasury’s decision to treat eligible PPP expenses as income is especially problematic because small businesses throughout many industries continue to struggle to survive. Without sustainable revenue streams, especially as we enter the winter months, businesses could default on these tax payments or permanently close their doors.
For these reasons, we urge you to reverse your decision and to work with Congress to resolve this ongoing issue. This is also a belief held by the leaders of the Senate Finance Committee and the Chair of the House Ways and Means Committee, in addition to prominent members of Congress from both parties, which underscores the importance of finding a workable solution. We thank you for your consideration and look forward to hearing from you soon.
