Higher ed groups ask for more flexibility on Paycheck Protection Program – Education Dive
33
0
Dive Brief:
- More than a dozen higher education associations are urging the U.S. Small Business Administration (SBA) to loosen the eligibility requirements for a federal coronavirus relief program so more small colleges can qualify.
- Congress established the Paycheck Protection Program earlier this year to provide loans to businesses with 500 or fewer employees during the pandemic. The loans can be forgiven if businesses spend at least 60% of the funds on payroll and meet other requirements.
- In a letter to the SBA on Monday, the groups said all student-workers should be excluded from the employee count required to qualify for the program in part because they are no longer on campus and are making many institutions ineligible.
Dive Insight:
The program gives small businesses and private colleges loans with a 1% interest rate so they can continue paying their workers and covering other costs, such as their utility and mortgage bills. The program ran out of its first round of funding in April, but Congress gave it a $310 billion infusion.
tags:
This Month