b'LEGISLATIVEREPORTnothing will prohibit lenders andachieving the 75 percent threshold. expenses, such as drydock inspections. borrowers from mutually agreeingThe Passenger Vessel AssociationPVA has alerted Congressional leaders to modify the maturity terms of ahas identified several other costs thatof these needs. The newly-enacted bill covered loan. are unique to passenger vessels thatdoes not incorporate these recommen-PPP was created in March to finan- need to be designated as permissibledations, but there may be another coro-cially assist smaller businesses as theyexpenses for PPP funds. These includenavirus aid bill developed later this contend with the dramatic economicdockage fees, marine fuel, vesselsummer, so PVA will keep advocating consequences of the coronavirusinsurance, and Coast Guard-mandatedfor these changes. npandemic. Administered by the Small Business Administration and distrib-uted through private lending institu-tions, PPP funds can be used to retain workers on a companys payroll, meet rent or mortgage expenses, and payattention to detailother allowable expenses. Used as a loan, PPP awards have a favorable one percent loan rate. However, if the funds are used in certain specified ways, the loan can be forgiven; in essence, the loan becomes a grant.Congress has provided two infusions of funding to PPP. Taken together, they amount to $670 million. At the end of May, nearly 4.5 million companies had received PPP aid, and not all of the funds had been spoken for. One can still apply for PPP assis-tance through a participating financial institution until June 30.PPP was hastily devised by lawmakers in a period of little overwww.beurteaux.comtwo weeks. There was a great rush to enact economic stimulus legislation and get funds out the door quickly and into private hands. Not surpris-ingly, as companies, banks, and the federal government gained real-life experience in implementing PPP, defi-ciencies in the structure of the program have become evident. For example, as initially conceived, PPP was intended to help businesses get through what was hoped to be a brief, weeks-long period of economic distress that would be over by June 30. Now its clear that help is needed for a considerably longer period of time. Another problem arose from the Treasury Departments original rule that at least 75 percent of the funds received were to be used for payroll costs if the loan is to be forgiven. Many employers have fixed costs other than payroll that prevent them from JUNE 2020FOGHORN 31'