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US trade bodies push for relief for firms during crisis
27 May '20
2 min read
Pic: Shutterstock
The American Apparel and Footwear Association (AAFA) recently co-signed a letter with more than 130 organisations calling for fixes to the Paycheque Protection Programme (PPP). The letter, addressed to several top US government politicians, requests emergency legislative and administrative action to repeal the programme's 75 per cent-25 per cent rule, extend the eight-week period for purposes of calculating loan forgiveness and extend the June 30 safe harbour date for rehiring and restoration of pay.
“These steps would conform the PPP with the reality of the gradual reopening now occurring across the United States and would help ensure that more small businesses remain in operation,” the letter said.
“The current rules made sense when the programme was created, and it was anticipated that stay-at-home orders would last only a few weeks. However, their implementation in the current environment is making it harder for small businesses to survive. Small businesses that close permanently will never be able to rehire their employees,” it said.
These three modest changes would help ensure that the liquidity provided through the PPP can be deployed in a manner that is most likely to allow a small business to remain operational, the letter said.
Specifically, these changes would help small business owners who need capital for overdue rent payments, the re-start of vendor contracts, and other necessary expenses. In addition, the extended deadlines would permit a more orderly return to work consistent with the phased reopening, it added.
AAFA also submitted detailed comments on to the US Customs and Border Protection office and the US treasury department requesting an extension and modification of the duty deferral programme.
It suggested including additional months in the deferral programme, expand the programme to include all duties, modify the hardship test and allow retroactive refunds.
“These steps would conform the PPP with the reality of the gradual reopening now occurring across the United States and would help ensure that more small businesses remain in operation,” the letter said.
“The current rules made sense when the programme was created, and it was anticipated that stay-at-home orders would last only a few weeks. However, their implementation in the current environment is making it harder for small businesses to survive. Small businesses that close permanently will never be able to rehire their employees,” it said.
These three modest changes would help ensure that the liquidity provided through the PPP can be deployed in a manner that is most likely to allow a small business to remain operational, the letter said.
Specifically, these changes would help small business owners who need capital for overdue rent payments, the re-start of vendor contracts, and other necessary expenses. In addition, the extended deadlines would permit a more orderly return to work consistent with the phased reopening, it added.
AAFA also submitted detailed comments on to the US Customs and Border Protection office and the US treasury department requesting an extension and modification of the duty deferral programme.
It suggested including additional months in the deferral programme, expand the programme to include all duties, modify the hardship test and allow retroactive refunds.
Fibre2Fashion News Desk (DS)
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