Rep. Hill Introduces Practical Act to Provide Targeted Relief to Businesses that Most Need It

Press Release

Today, Rep. French Hill (AR-02) and Rep. Chrissy Houlahan (PA-06) introduced the bipartisan Paycheck Protection Program (PPP) Revenue Adjustment Calculation to Increase Capital Accessibility Long-term Act, or the PRACTICAL Act. The PRACTICAL Act amends current law to allow small businesses that are eligible for the second-draw PPP to calculate their revenue based off a 90-day earning period rather than a set quarter calendar year. As the economy turns the corner, this legislation provides targeted relief to the businesses that most need it.

"The PPP, created by the CARES Act, has been a necessary tool for struggling small businesses as they've weathered the unprecedented COVID-19 pandemic. In fact, more than 14,000 businesses in Arkansas have received $4.6 billion and through the program have helped save more than 375,000 jobs," said Rep. Hill. "I'd like to thank Rep. Houlahan for joining me in introducing this commonsense bill. Small businesses are the lifeblood of Arkansas, and I am honored to be able to advocate for them in Washington, D.C."

"While we are making great progress in our fight against the pandemic, our small businesses still need help," said Houlahan. "I sound like a broken record, but our economy will not successfully recover until our small businesses recover. They represent the very backbone of our economy, at both the local and national level. I have spoken with countless small business owners these past few weeks about their difficulty obtaining a second PPP loan because of the current earning criteria. So, I was pleased to work across the aisle with my friend and colleague, Rep. French Hill, to introduce a bill that would address these concerns and ensure the PPP program is helping the small businesses who need it most. I'm proud that not only is this a bipartisan effort but also that it responds directly to the needs of my constituents."

"NFIB and small businesses would like to thank Representative French Hill and Representative Chrissy Houlahan for introducing the PRACTICAL Act that would give small business owners increased flexibility for second draw PPP eligibility," added Kevin Kuhlman (Vice President, Federal Government Relations, National Federation of Independent Business). "Many small business revenue cycles do not follow strict quarterly cycles, especially those in the tourism and hospitality industries. By adjusting the eligibility calculation to 90 consecutive days, the bill would allow additional small businesses to be eligible for a second PPP loan. The change is welcome news to small businesses."

To see Rep. Hill's remarks from a press conference held to announce the introduction of the PRACTICAL Act, click HERE or on the image above.
Further Background:

The bill's introduction comes on the heels of a press conference Rep. Hill hosted last week at Taziki's in Little Rock, AR, announcing his plans to introduce the legislation. Rep. Hill was joined by Jim Keet (Chairman, JTJ Restaurants, LLC.), Montine McNulty (CEO, Arkansas Hospitality Association), and Gretchen Hall (CEO, Little Rock Convention Center).

The PPP has been an important and necessary tool for many struggling businesses across Arkansas and America. In Arkansas, more than 14,000 businesses have received $4.6 billion and through the program have helped save more the 375,000 Arkansas jobs.

However, some small businesses are currently at a disadvantage with how the program is set up because of how a business must show its year over year revenue decrease.

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