News from Representative Luria

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Dear Friend,

As a former small business owner, I am dedicated to equipping our regional economy with the resources they need during this unprecedented health and economic emergency. In March, I supported the CARES Act, which created the Paycheck Protection Program (PPP) to provide relief for small businesses. Recently, the Department of the Treasury announced an update to the PPP, which will assist seasonal businesses throughout Coastal Virginia.

The PPP provides loans to small businesses that have been harmed by the coronavirus pandemic. Loans under this program may be used to cover payroll costs, healthcare benefits, mortgage interest payments, rent, utilities, and other interest payments. Under the CARES Act, the cost of eight weeks of payroll and operating expenses can be fully forgiven from a PPP loan provided criteria are met.

Previously, businesses could only base the size of their PPP loan off revenues from late winter and spring. I heard from many local seasonal small businesses that this requirement meant that the loan would not be enough to recover losses from their peak season. In response, on April 23 I called for reforms to the PPP to give seasonal businesses more flexibility in choosing their loan base period.

On April 28, the Department of Treasury issued a new rule for the PPP to assist seasonal businesses. Per this new rule, seasonal businesses can choose any twelve-week period between May 1 and September 15, 2019, to determine their PPP loan size. This change ensures seasonal businesses that see their revenues peak in the summer can receive additional assistance during this crisis.

Businesses may apply for a PPP loan through their local SBA-approved lender. For a list of approved lenders in Virginia, please see here. To learn more about the PPP, please see my website’s FAQ here.

Please know that during this trying time, my team and I stand ready to serve our community. For helpful resources to help you and your family navigate through this public health emergency, please visit my website here. If you have any questions, feel free to reach out to our offices at the numbers below.

Sincerely,

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