Job Creators Network Calls on Biden Administration to Go Further on PPP Reforms and Demand States Make Loans Fully Nontaxable
Washington D.C. (February 22, 2021) – Today, the Biden Administration made several reforms to help the most vulnerable small businesses get PPP funding more easily.
Alfredo Ortiz, president and CEO of the Job Creators Network, released the following statement calling on the administration to go further and demand states make PPP loans fully nontaxable.
“The Biden Administration’s moves to target PPP funds to the most vulnerable small businesses, including Main Street employers with fewer than 20 employees, builds upon the Trump administration’s wildly successful original vision for this program. The Job Creators Network has been loud and clear that the PPP must help ordinary small businesses, and we’re happy to see the Biden Administration listen to small business advocates and take steps in this direction. Yet small businesses across the country are still facing a significant PPP-associated burden because some states are forbidding them from deducting PPP-funded expenses from their tax returns. Taxing PPP loans in this manner goes against federal tax policy, which allows PPP expenses to be deducted, as well as the spirit of the program, which helps small businesses, not state legislatures. The Biden Administration should follow up its PPP changes by using its bully pulpit to demand that state lawmakers follow federal guidelines and make PPP loans fully nontaxable. Such a move would help small businesses far more than the PPP changes made this week.”