Dear Neighbor,

The Coronavirus Aid, Relief, and Economic Security (CARES) Act established the Paycheck Protection Program (PPP) to provide critical emergency funding to small businesses. I wholeheartedly supported its creation as a lifeline for businesses and their employees who, through no fault of their own, are struggling to stay afloat during this crisis.

However, I’ve heard from many small and mid-sized businesses across our community who are frustrated by recent Treasury Department guidance that seems to weaken the PPP, and from many who have had difficulty actually obtaining PPP loans. That is unacceptable, and flies in the face of Congress’ intent in establishing this program.

I wrote to Treasury Secretary Steve Mnuchin this week urging him to address shortcomings in the loan application process and to issue revised guidance that better aligns with congressional intent to provide meaningful and immediate relief to small businesses with minimal hassle or delay.

You can read the full letter here, and I’ve included a few excerpts below:

Dear Secretary Mnuchin,

I write to you today regarding concerns voiced to us by small and mid-sized businesses across Virginia. These businesses have been forced to make tough decisions to lay off hundreds of employees, slash salaries, and adapt to new to-go and delivery-dependent service operations as a result of the COVID-19 pandemic.

While the Coronavirus Aid, Relief, and Economic Security (CARES) Act established the Paycheck Protection Program (PPP) to provide critical emergency funding for these businesses, recent guidance from the Treasury Department seems to weaken the program, which is meant to serve as a lifeline to these small and mid-sized businesses and their employees.

…

Furthermore, I am hearing that Virginia constituents are facing difficulties obtaining loans through the PPP. For example, some financial institutions have required that businesses have an existing line of credit or a credit card account in order to obtain a loan. Imposition of such requirements, which are outside the purpose of the program, are unnecessary at best and, in the case of some of our constituents, harmful to their ability to access the program. We therefore ask that Treasury firmly prohibit lenders from imposing PPP loan requirements outside the scope of the CARES Act in the Department’s final rulemaking. 

…

The Treasury Department’s guidelines must not undermine Congress’s intent for PPP, and I urge you to provide updated guidance that fully addresses and corrects the matters of concern outlined above.

The CARES Act also provided $275 million in grants to the nation’s network of Small Business Development Centers (SBDCs) and Women’s Business Centers (WBCs), as well as the Minority Business Development Agency’s Business Centers (MBDCs), to provide mentorship, guidance and expertise to small businesses:

Mason SBDC
Small Business Development Center
4031 University Drive, Ste. 100
Fairfax, VA 22030
(703)-261-4105

SBDC at Community Business Partnership
Small Business Development Center
6564 Loisdale Road, Suite 600
Springfield, VA 22150
703-768-1440

Please take care of yourselves and each other, and remember that my office is here to help. If you’re a small business owner in the 11^th District and would like to request a letter of introduction to accompany your PPP loan application, please click here.

And be sure to visit the COVID-19 page on my website for more information and resources. If you have any questions or concerns, or if you need assistance, please don't hesitate to call us at (703) 256-3071.

Sincerely,

Gerald E. Connolly
Member of Congress

P.S. Small business owners can request a letter of introduction for PPP loan applications HERE.