Saratoga, NY – Last night, the U.S. Department of the Treasury released Frequently Asked Questions (FAQs) on the new Paycheck Protection Program (PPP) loans established under the CARES Act and issued this important clarification based on the guidance provided and developed by Congresswoman Stefanik who worked with President of the Adirondack Regional Chamber of Commerce, Michael Bittel.
"Numerous North Country seasonal businesses contacted my office because the initial Paycheck Protection Program guidance did not fully clarify eligibility for seasonal businesses,” said Congresswoman Stefanik. “I immediately contacted the Deputy Secretary of Treasury and worked directly with the Department of Treasury to issue needed additional guidance so that our financial institutions were able to process loans for our seasonal businesses, which are critical to our North Country economy.”
“The ARCC received several calls from around the region, this past Friday, from our seasonal business members regarding lack of clarity on their PPP eligibility,” said Michael Bittel, President & CEO of the Adirondack Regional Chamber of Commerce. “We immediately called Congresswoman Stefanik last Friday and worked with her and her staff on clarifying the verbiage. By Monday night, three days later, our verbiage was incorporated in the follow up guidance and Q&A from the Treasury Department. Many thanks to Congresswoman Stefanik and her staff for quick action and working with us to support our members and their employees.”
Question: My small business is a seasonal business whose activity increases from April to June. Considering activity from that period would be a more accurate reflection of my business’s operations. However, my small business was not fully ramped up on February 15, 2020. Am I still eligible?
Answer: In evaluating a borrower’s eligibility, a lender may consider whether a seasonal borrower was in operation on February 15, 2020 or for an 8-week period between February 15, 2019 and June 30, 2019.