TRSA Working for Waiver to Paycheck Protection Program
View TRSA’s Letter to Sens. McConnell and Schumer
President Donald J. Trump (R) and congressional leaders are working to add billions of more dollars into the Paycheck Protection Program (PPP), the relief fund for American small businesses established by the Coronavirus Aid, Relief and Economic Security (CARES) Act, as concerns mount that it could run dry before eligible shops ever see a cut. Treasury Secretary Steven Mnuchin is asking Congress for $250 billion more to aid small businesses. Sen. Mitch McConnell (R-KY) said in a statement that he plans to hold a vote on the added funds on Thursday and hopes the Unites States House of Representatives approves the funding on Friday.
The CARES Act provides much-needed funding to keep workers on payrolls and businesses open in the form of the Paycheck Protection Program. The Act allows for any small business concern that meets the Small Business Administration’s (SBA) size standards, including 501(c)(3) nonprofit organizations, 501(c)(19) veterans organizations, or Tribal business concerns (sec. 31(b)(2)(C) of the Small Business Act) with less than 500 employees and any business with a North American Industry Classification System (NAICS) Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location.
Many commercial laundry companies employ more than 500 employees; however, they have multiple plants which individually do not have 500 employees. The main customers of these laundry companies are the accommodations and food services companies expressly mentioned in the legislation for the SBA’s waiver test. To allow these laundries and suppliers the relief necessary to remain viable, TRSA has sent a letter to Sens. McConnell and Chuck Schumer (D-NY) as well as the leadership of the Senate Finance Committee requesting the NAICS codes for industrial laundries and linen supply as well as their suppliers be added to the SBA waiver for the PPP.
To view a copy of the letter, click the link above or visit www.trsa.org/covid19.