OOIDA wants truck payments to factor in PPP loan amounts
May 21, 2020
OOIDA is asking the sponsors of the Paycheck Protection Flexibility Act to include improvements that will benefit small-business truckers.
The Association on Wednesday, May 20, sent letters to Reps. Chip Roy, R-Texas, and Dean Phillips, D-Minn., requesting that HR6886 allow trucking companies to include truck payments, insurance payments and depreciation when calculating the maximum Paycheck Protection Program loan amount. OOIDA also asked for the bill to include provisions to allow trucking businesses to use the loans to cover a wider range of expenses and provide loan forgiveness for these purposes.
OOIDA said many owner-operators have had difficulties in making use of the Paycheck Protection Program.
“Even when applicants do receive a loan, they are limited in how they can use it,” OOIDA President Todd Spencer wrote. “Owner-operators often run their business out of their home and do not have the rent, mortgage or utility expenses that are eligible under the PPP. Instead, their major business costs are truck payments, insurance payments and other operating expenses, like repairs and fuel.
“In the same way that a retail business won’t be able to reopen if they don’t pay their rent during this crisis period, a trucker will lose his or her livelihood if they aren’t able to make their truck payments.”
Paycheck Protection Flexibility Act
Roy introduced the bipartisan bill on May 15. As of May 21, it had five co-sponsors.
The bill sets out to amend the Small Business Act and the CARES Act to modify certain provisions related to the forgiveness of loans under the Paycheck Protection Program.
OOIDA is supportive of adding flexibility to the program but would like to make sure small-business truckers aren’t left behind.
“We thank you for your leadership on HR6886, the Paycheck Protection Flexibility Act, which will provide some flexibility for the PPP to make it more useful for small businesses,” OOIDA wrote to Reps. Roy and Phillips. “We agree that improvements must be made so that businesses are able to weather this crisis, and this legislation will provide some relief to the truckers we represent. At the same time, trucking operations face unique challenges that currently aren’t addressed by the program, and we, therefore, request that you consider targeted improvements to this legislation to ensure that small-business truckers are able to survive this crisis.”