WASHINGTON, JUNE 3 – The International Franchise Association (IFA) today released the following statement on the Senate passage of H.R. 7010, the Paycheck Protection Program (PPP) Flexibility Act:
“America’s small businesses needed this bill,” said Matt Haller, IFA Senior Vice President of Government Relations and Public Affairs. “By providing flexibility and certainty in how they can use PPP loans, small businesses – franchise or otherwise – can use this funding to stay in business, retain their employees, and give back to their communities.”
Prior to COVID-19, America’s 733,000 franchise businesses together employed more than 8 million Americans and contributed $675 billion to the nation’s economy.
H.R. 7010 would address the top PPP concerns voiced by franchises in a recent IFA survey, by:
- Allowing forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline.
- Providing a “Borrower’s Choice” provision, which allows those who received PPP loans prior to enactment to choose for the covered period of their loan to either last 8 weeks or 24 weeks from origination.
- Increasing the current limitation on nonpayroll expenses (such as rent, utility payments and mortgage interest) for loan forgiveness from 25 to 40 percent.
- Lengthening the loan maturity date from 2 to 5 years for new loans.
Celebrating 60 years of excellence, education, and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 8.4 million direct jobs, $787.5 billion of economic output for the U.S. economy and 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology and business development.