Letter to the Hon. Steven Mnuchin, Secretary of the Treasury and the Hon. Jovita Carranza - Stevens Shares PPP Frustrations with SBA, Treasury Department

Letter

Dear Secretary Mnuchin and Administrator Carranza,
It has come to my attention that small business owners in my district are facing significant
obstacles in benefitting from the Paycheck Protection Program (PPP).
While respective authorities of administration and appropriation continue to address the PPP's
statutory constraints, I urge the Treasury Department and Small Business Administration to
reconcile impediments to this program for small businesses.
As applicants have begun to receive award notification and PPP loan allocations, many are
beginning to weigh the benefits of participating given constraints around duration and flexibility.
I write today to encourage more transparency, given the lack of available information, and for
your offices to work more directly with employers and employees looking to benefit from the
nearly $700B of spend that has gone to PPP.
I have included for you testimonials from small business owners in my district that demonstrate
some of the roadblocks being experienced at the local level:
"We applied for and received a PPP loan/grant and we're grateful to get the money but we don't
know how to use it within the 8 week timeframe. We know that our restaurant will be closed for
at least six of the eight weeks and will reopen at 25% to 50% capacity so we're not sure how we
can use it in the allotted timeframe for allowable, forgivable uses. It is also hard to use the
money without any certainty about the terms because, given our financial situation, we don't
want to have to repay it. We need clear guidance from the federal government about the terms of
the PPP in order to be able to decide if we can use it." - Jim, Plymouth
"It should be structured to allow us to pay our rent and then bring our staff back when
appropriate. At that time, we will need startup funds and the PPP money still used for salary
would be of greater value." - Jonathan, Birmingham
"Unless we get some type of major financial relief immediately -- mainly rent relief -- we won't
ever be opening back up so there is no planning necessary. Our landlord has been very clear
that we are all 100% expected to pay our April rent and all rent going forward. And, until we do
pay all of our rent up to date, in full, we will not be allowed to continue to conduct business." -
Laurel, Canton
I would welcome the opportunity to discuss with you or your staff the ongoing challenges with
this program as a federally elected representative in southeastern Michigan and as a former
Treasury official who served during the last economic crisis. I am aware of the daunting
challenges you face and the importance of your stewardship for our nation at this hour. Thank
you for your service to the American people. I can be reached at (734) 853-3040, and would be
delighted to discuss these issues more in-depth with you or one of your lieutenants.
Thank you for your attention to this urgent matter.

Source