After tons of advocacy in the "virtual" halls of gov and in the press, and the incredible efforts by our fellow hospitality business groups and members in NY, and around the country, the US Senate and House of Representatives both voted to reform the PPP
On April 3rd, the first day businesses could apply for the Paycheck Protection Program ("PPP") the NYC Hospitality Alliance's Andrew Rigie and Rob Bookman co-authored an article in Forbes titled, No Seat At The Table For Restaurants: CARES Act Leaves Hospitality Industry Hanging
. The article explained why the well-intended PPP didn't work for our industry, and we proposed fixes to help save countless small businesses. After tons of advocacy in the "virtual" halls of government and in the press, and the incredible efforts by our fellow hospitality business groups and members in New York, and around the country, the U.S. Senate and House of Representatives both voted to pass important reforms to the PPP, which we detail below.
The Paycheck Protection Program Flexibility Act includes several improvements we had been pursuing that will improve the PPP:
- Extending the expense forgiveness period from eight weeks to 24 weeks
- Reducing the payroll ratio requirement to 60 percent
- Increasing the loan repayment period from two to five years on new loans
- Allowing payroll tax deferment for PPP recipients
- Extending the June 30 rehiring deadline
We thank the New York Congressional Delegation, Senator Gillibrand, and of course, Senator Schumer and his team for their tireless advocacy and support of New York's restaurant and greater hospitality industry. Senator Schumer has been a fighter for us during this crisis, he led efforts to get this bill through the Senate, and we look forward to our continued partnership in supporting New York City's hospitality industry during these trying times. We are also grateful to all our friends and partners in the business community for their advocacy across the nation.
to read a detailed memo about the Paycheck Protection Program Flexibility Act prepared by our friends at Fox Rothschild LLP. It's expected that President Trump will sign the bill into law.