The National Business Aviation Association (NBAA) today welcomed congressional passage of legislation to provide an additional $310 billion in funding to the Paycheck Protection Program (PPP). The program, administered by the Small Business Administration (SBA), is a key provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and has provided relief to more than one million small businesses.
As part of the new PPP funding, $60 billion will be set aside for small lenders and community-based financial institutions. In addition, $50 billion in new funding will be provided to the SBA Economic Injury Disaster Loan program.
NBAA strongly advocated for inclusion of general aviation businesses in all CARES Act provisions, reminding legislators and the Administration that business aviation – mostly made up of thousands of small and mid-size enterprises – generates $77 billion in labor income, helping families across the nation pay bills and put food on the table, while supporting local communities. In addition to eligibility for SBA loans and grants, NBAA advocated and successfully ensured eligibility for general aviation air carriers for relief packages administered by the Department of the Treasury.
Read more about NBAA’s advocacy.
“We are very pleased to see Congress respond to the continuing, highly challenging needs of many small businesses and their employees,” said NBAA President and CEO Ed Bolen. “We appreciate the bipartisan efforts of Congress, the Department of Treasury and the Small Business Administration to make billions of dollars available to save the jobs of many small business employees.”
PPP loans are available to small businesses with fewer than 500 employees, sole proprietorships, independent contractors and other specific organizations. These loans have favorable terms, and part or all of a loan can be forgiven if the funds are used for authorized expenses, including payroll expenses, interest on mortgages, rent or utilities, if those commitments were made prior to Feb. 15, 2020.
The SBA announced last week the PPP had run out of funds with thousands of small businesses still awaiting loan approval and funds disbursement.
