DES MOINES, Iowa – U.S. Rep. Ashley Hinson, R-Iowa, introduced the Paycheck Protection Program (PPP) Equity Act last week along with U.S. Rep. Abigail Spanberger, D-Va. The bill ensures farmers, ranchers, and self-employed small businesses can receive their full PPP forgivable loan amount.
On Tuesday, U.S. Rep. Cindy Axne, D-Iowa, signed on as a co-sponsor.
Previous modifications made by Congress and the Small Business Administration to the PPP program allowed farmers, ranchers, and certain small businesses to recalculate their loans based on gross income rather than net profits. However, those modifications had limitations on retroactivity. During a press call on Friday, Hinson said the PPP Equity Act would fix this disparity, allowing these groups to retroactively recalculate to receive the full loan amount available, regardless of their previous loan status.
“I have heard from many Iowa small businesses and farmers who have been unable to get their full PPP loans due to a bureaucratic oversight. This bipartisan solution will ensure that Iowans have the resources they need to persevere through this pandemic,” Hinson said in a released statement on Friday.
Axne said she would not just co-sponsor but advocate for the bipartisan legislation in the U.S. House of Representatives with a slim Democratic majority.
“I’m proud of the changes we’ve made over the last few months to help our farmers, ranchers, and self-employed individuals benefit from PPP loans, which have kept many businesses afloat during this last year. However, too many of them have been unable to get the full amount they’re eligible for simply because they applied too early or already had their loan forgiven,” she said in a released statement. “This bipartisan, commonsense legislation will give farmers, ranchers, and self-employed individuals access to the full PPP funds to which they are entitled.”
The National Federation of Independent Businesses has endorsed the legislation.