The Associated Equipment Distributors (AED) delivered a letter to lawmakers on Capitol Hill urging them to expand critical loan programs and tax provisions enacted in previous COVID-19 legislative initiatives to ensure more construction business owners, including equipment distributors, can benefit.
Brian P. McGuire, AED president and CEO, urged Congress to make changes to the Coronavirus Aid, Relief and Economic Security Act (CARES Act) and Payroll Protection Program (PPP) to broaden its reach, including waving affiliation rules for companies and allowing businesses employing not more than 500 employees per physical location to qualify for the PPP.
“In addition to ensuring the program is fully funded and available for all that qualify, Congress should allow more businesses to take advantage of the benefits,” McGuire wrote. “Consequently, AED urges Congress to waive affiliation rules for all companies and also allow businesses that employ not more than 500 employees per physical location to qualify for the PPP.”
The AED also urged Congress “to permit companies with more than 500 employees that voluntarily provide paid leave to take advantage of tax credits provided to smaller companies by the Families First Coronavirus Response Act.” The expansion of tax credits would permit those companies providing paid leave to recoup costs.
McGuire further encouraged Congress to work with the administration as the Federal Reserve and Treasury Department releases details of its "Main Street Lending Program" to ensure it provides similar benefits to the PPP for mid-sized companies. “While the program has just been outlined, AED urges Congress to work with the administration as it details specifics to ensure it’s as similar as possible to the PPP to increase liquidity and encourage mid-sized companies to maintain payroll,” he urged.
Looking toward an expedited economic recovery, McGuire added, "It is vital Congress begins focusing on jump-starting the economy post-economic shutdown. There's no better way to do this than infrastructure investment paired with robust funding for career and technical education and workforce development initiatives."
Click here to read the letter in its entirety.