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NRF hails House measure on Paycheque Protection Programme
01 Jun '20
2 min read
Pic: Shutterstock
The National Retail Federation (NRF) recently welcomed the US House of Representatives action on a legislation that would give employers more time and flexibility to use Paycheque Protection Programme money aimed at helping small businesses survive the COVID-19 pandemic.
Under the Paycheque Protection Programme Flexibility Act, businesses would be given up to 24 weeks to spend funds from the programme and still have the Small Business Administration loans forgiven. That’s three times the eight-week period set when the programme was set up to assist companies with fewer than 500 employees as part of the Coronavirus Aid, Relief and Economic Security Act.
In addition, a requirement that 75 per cent of the money be used on payroll would be reduced to 60 per cent, allowing more of the money to be spent on other expenses.
“Businesses need more flexibility as they struggle with how to respond to COVID-19,” NRF senior vice president for government relations David French said in a statement.
“Retailers want to reopen their stores, but first they want to make sure their stores are safe for their employees and customers. Congress needs to give them the time to do that properly and let them invest government aid in the supplies, equipment and modifications needed to ensure safety,” he said.
A separate measure awaiting action in the Senate would give businesses 16 weeks to spend the money and allow it to be used on personal protective equipment such as face masks or gloves, and on ‘adaptive investments’ like expanding drive-through windows or installing sneeze guards.
French said either bill would give small retailers more time to implement guidelines for safe reopening NRF has developed under its Operation Open Doors initiative. The guidelines address four key areas: health and safety, people and personnel, logistics and supply chain, and litigation and liability.
NRF asked lawmakers to expand the Paycheck Protection Program “to cover the worst months of the economic slowdown” in a May 6 memo sent to members of Congress, saying the economic impact of the pandemic is likely to last ‘far beyond’ the programme’s June 30 expiry.
Under the Paycheque Protection Programme Flexibility Act, businesses would be given up to 24 weeks to spend funds from the programme and still have the Small Business Administration loans forgiven. That’s three times the eight-week period set when the programme was set up to assist companies with fewer than 500 employees as part of the Coronavirus Aid, Relief and Economic Security Act.
In addition, a requirement that 75 per cent of the money be used on payroll would be reduced to 60 per cent, allowing more of the money to be spent on other expenses.
“Businesses need more flexibility as they struggle with how to respond to COVID-19,” NRF senior vice president for government relations David French said in a statement.
“Retailers want to reopen their stores, but first they want to make sure their stores are safe for their employees and customers. Congress needs to give them the time to do that properly and let them invest government aid in the supplies, equipment and modifications needed to ensure safety,” he said.
A separate measure awaiting action in the Senate would give businesses 16 weeks to spend the money and allow it to be used on personal protective equipment such as face masks or gloves, and on ‘adaptive investments’ like expanding drive-through windows or installing sneeze guards.
French said either bill would give small retailers more time to implement guidelines for safe reopening NRF has developed under its Operation Open Doors initiative. The guidelines address four key areas: health and safety, people and personnel, logistics and supply chain, and litigation and liability.
NRF asked lawmakers to expand the Paycheck Protection Program “to cover the worst months of the economic slowdown” in a May 6 memo sent to members of Congress, saying the economic impact of the pandemic is likely to last ‘far beyond’ the programme’s June 30 expiry.
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