MADISON – Today, Rep. Tip McGuire, along with Democratic colleagues in the Assembly, released a substitute amendment to Assembly Bill 2.
The amendment consists of two parts: 1) a deduction for expenses paid with PPP loan funds that is capped at $250,000 and 2) a $214.7 million grant program for struggling small businesses. The PPP cap gives every single business that took PPP a deduction, and caps just the largest 10% of loans. By doing so, the state can provide $200 million in targeted grant relief to the small businesses that were hurt most by the pandemic.
“Our state is about to make a $400 million decision on how best to help small businesses,” said Rep. McGuire, “This plan is about speed and need. By utilizing a grant program, we can provide immediate assistance to small businesses that need it most.”
To immediately utilize a deduction, a business must first have profits to deduct from. For so many businesses in the state, this is not the case due to COVID-19, meaning they will not gain any benefit from a PPP deduction for years to come.
“For the small businesses on the brink of closure, financial assistance a year or two from now could very well be too late,” Rep. McGuire, “We can do better for our Main Street businesses, and for $400 million, it is critical that we do this right.”