The American Apparel and Footwear Association (AAFA) recently co-signed a letter with more than 130 organizations calling for amendments in the Paycheque Protection Program (PPP). Addressed to several top US government politicians, the letter requests emergency legislative and administrative action to repeal the program's 75 per cent-25 per cent rule, extend the eight-week period for purposes of calculating loan forgiveness and extend the June 30 safe harbor date for rehiring and restoration of pay.
These three modest changes would help ensure that the liquidity provided through the PPP can be deployed in a manner that is most likely to allow a small business to remain operational, the letter said. Specifically, these changes would help small business owners who need capital for overdue rent payments, the re-start of vendor contracts, and other necessary expenses. In addition, the extended deadlines would permit a more orderly return to work consistent with the phased reopening, it added.
AAFA also submitted detailed comments on to the US Customs and Border Protection office and the US treasury department requesting an extension and modification of the duty deferral program.
It suggested including additional months in the deferral program, expand the program to include all duties, modify the hardship test and allow retroactive refunds.