Congressmen Neguse Urges Improved Loan Forgiveness Options for Colorado’s Seasonal Businesses

A letter sent to the U.S. Small Business Administration urges accommodations for ski industry employers and other seasonal businesses by offering alternative “look back” periods for CARES Act PPP loans

Washington D.C.—Today, Congressman Joe Neguse, joined by bipartisan and bicameral members of the Colorado delegation, called for the U.S. Small Business Administration to offer alternative solutions for seasonal employers under the Coronavirus Aid, Relief and Economic Security (CARES) Act’s Paycheck Protection Program (PPP).

The letter notes that currently PPP loans only provide one look back period for loan forgiveness—February 15, 2019 to June 30, 2019—and determines the loan forgiveness based on number of employees during that period. During that time period, the ski industry will have higher employment levels in comparison to the eight-week period covered by PPP in 2020, putting them and other seasonal businesses at a great disadvantage for accessing loans available through the program.

“As the seasons change, activity at the ski areas decrease, seasonal employees are no longer required, and many areas operate with a small base of year-round, full-time employees,” reads the letter. “Therefore, depending on the time of year, the number of employees fluctuates dramatically for many local ski businesses. The same can be said for a number of other outdoor recreation businesses, each with their own respective peak seasons.”

The letter asks for the administration to provide alternative look-back periods to better accommodate the uniqueness of seasonal employment and to position these businesses to fully benefit from the PPP.

“As we continue to fight the COVID-19 pandemic, our local communities that rely on strong tourism and seasonal business will be among the most economically vulnerable. It is crucial that we take all the necessary steps to protect them,” said Congressman Neguse. “Given the uncertainty of the COVID-19 situation, we must make every effort to help these businesses survive. I’m proud to stand up for Colorado’s small businesses and our seasonal workers to ensure they receive their fair share of economic relief.”

Read the letter here.

A recent study found that Colorado’s ski industry alone supports more than 46,000 jobs and generates approximately $4.8 billion in economic activity annually.

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