In an effort to support franchise businesses through the pandemic, the International Franchise Association (IFA) is urging the franchise community to Support the Paycheck Protection Program Flexibility Act
This legislation would:
- change the program sunset date from June 30, 2020 to December 31, 2020;
- extend the rehiring deadline for loan forgiveness from 8 to 24 weeks;
- lengthen the loan maturity date from 2 to 5 years;
- eliminate the requirement businesses must spend 75 percent of funds on payroll to qualify for forgiveness;
- extend the rehiring deadline to align with the expiration of enhanced Unemployment Insurance; and
- provide a “Borrower’s Choice” provision, which allows those who received PPP loans prior to enactment to choose for the covered period of their loan to either last 8 weeks or 24 weeks from origination.
As the House prepares for a vote on H.R. 7010 on Thursday, IFA sent a key vote letter expressing strong support and urging the U.S. House of Representatives to swiftly pass H.R. 7010 to provide thousands of franchise businesses with meaningful relief as they struggle to survive the pandemic.
Additionally, IFA led a coalition letter with more than 25 business groups which was sent to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy. The letter states the urgency of providing the necessary improvements to the PPP.