Tuesday, April 28, 2020

Adjustment in SBA PPP Allows for Loans that Help Upper Peninsula's Seasonal Businesses

The Upper Peninsula of Michigan is a rural and rustic place that attracts snowmobilers, hikers, and general outdoor enthusiasts. According to Michigan Works sponsored report in 2017 the Upper Peninsula's third largest work demographic was Leisure and Hospitality. Its a tourist type place with vacation destinations like Mackinac Island, Escanaba and Munising (...and more). That also means many of the seasonal businesses were left out of the original PPP program because they were not Open a 12-week period beginning in February and/or March through June 2019.

The new loan criteria designed to help seasonal businesses allows businesses to select a 12 week period between May 2019, and mid-September 2019. That means such businesses can now use a payroll that would be active during a time when they are open so they can get the maximum amount. When the snow melts they open and unfortunately prior to this change they were left out so the adjustments are a positive one not only for the Upper Peninsula but also Escanaba and Gladstone.

"Many First District small businesses are seasonal in nature. I’ve been advocating for this new ruling to allow our seasonal businesses greater funding access that more appropriately reflects their business model and needs.‘One-size-fits-all’ regulations have never worked for Northern Michigan and the Upper Peninsula, and I will remain engaged with the Administration to ensure the PPP works for our communities’ true small businesses," says Congressional Rep. Bergman (1).

You may also want to read Small Business Administration Business Loan Program Temporary Changes; PaycheckProtection Program – Additional Criterion for Seasonal Employers by Michael Faulkender, Assistant Secretary for Economic Policy for the U.S. Department of Treasury. There is some additional details within the document that may be of interest to small seasonal businesses.

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