House Drafts Legislation to Expand PPP to Local Media Outlets

RADIO ONLINE | Tuesday, May 12, 2020 | 5:21pm CT

U.S. Congress

The U.S. House of Representatives has drafted legislation to expand eligibility for SBA loan access to struggling local radio stations. The expansion of PPP for local media would provide broadcasters, as well as newspapers, the same treatment as hotels and restaurants received under the original CARES Act PPP. It would require a local station to fit within the SBA size standard for the broadcasting industry, or under $41.5 million in revenue annually, and ensure that expanded PPP funds would remain at the local level through additional oversight.

NAB President and CEO Gordon Smith said in a statement, "NAB thanks Speaker Pelosi and Chairwoman Velázquez for their inclusion of expanded access to Payroll Protection Program loans for local radio and television stations in today's draft Coronavirus economic relief legislation. NAB is particularly grateful to Reps. Cicilline and Sensenbrenner for their leadership in garnering the bipartisan support of 124 of their colleagues for these important provisions to be included in the bill, and Senators Cantwell, Schumer, Klobuchar, Boozman and Kennedy for their strong support in the Senate for these provisions.

"Hometown broadcasters and community newspapers are providing vital news and information during these unprecedented times to keep families and communities safe, while struggling with record advertising revenue losses. Broadcasters look forward to working with all Members of Congress to ensure that such legislative language is swiftly enacted."

On a bipartisan basis, Members of Congress have previously signaled their support for supporting local media outlets during the COVID-19 pandemic through expanded eligibility for small business loans or federal advertising investment.