(DENVER) JUNE 5— The National Association of RV Parks and Campgrounds (ARVC), working alongside industry partners, has successfully fought for seasonal businesses owners to have even more flexibility to use Paycheck Protection Program (PPP) funds.
Seasonal businesses, including private RV parks and campgrounds, struggling with the June 30 expiration originally placed on PPP funds combined with mandated closures, will now have more latitude in using their PPP loans as they reopen and rehire employees after the bill passed by the Senate on Wednesday was signed into law by President Trump on Friday morning.
The new law extends the amount of time RV park and campground owners will have to use PPP funds from eight weeks to 24, greatly benefiting all seasonal businesses. It also extends the deadline to rehire laid-off and furloughed employees and still qualify for loan forgiveness from June 30 to Dec. 31.
“ARVC worked in collaboration with Outdoor Recreation Roundtable (ORR) and other industry partners to get this done for our members because it was important seasonal small businesses like RV parks and campgrounds be able to access and use the PPP loans in the same way as every other small business in this country,” says Paul Bambei, president and CEO of ARVC. “There were a lot of private RV parks and campgrounds who were getting shut out and it just wasn’t fair. They needed a more realistic timeline to use these funds.”
The industry organizations collaborating in this advocacy effort with ARVC and ORR were more than 24 state associations, the RV Industry Association (RVIA), the RV Dealers Association (RVDA), Kampgrounds of America (KOA) and others.
Working directly with the U.S. Small Business Administration (SBA), ARVC and its industry partners were able to convince the SBA that the original PPP requirements “could result in an unintended burden to borrowers” which helped as Congress finalized these latest updates.
In addition to the timeline extension, the new law also reduces from 75% to 60% the amount of PPP funds that must be spent on payroll for the loan to be completely forgiven. The remainder can be used for rent, utilities and mortgage payments.
The new law also gives borrowers five years to repay the loan instead of two years.
PPP loans are for up to $10 million per applicant with an interest rate of 1%.
The federally guaranteed loans are made by banks and other private lenders. About $90 billion in guarantees are still available, out of $659 billion authorized by Congress. The first $349 billion in guarantees was exhausted in two weeks but demand slowed as small business owners found the regulations didn’t suit their needs.
RV parks and campgrounds and other seasonal businesses in the outdoor recreation industry are encouraged to apply now for the remaining funds available. To find a bank or private lender near you visit arvc.org/coronavirus.
About National Association of RV Parks and Campgrounds (ARVC)
ARVC, a leader in the outdoor hospitality industry, is the only national association dedicated to representing the interests and needs of private RV parks and campgrounds in the US and Canada. We are deeply committed to providing our nearly 3,000 members exclusive access to continuing education, networking, business and marketing tools, member-only benefits and discounts, and advocacy at the local, state and national levels. For more information about ARVC, visit our website at www.arvc.org.