Senate Introduces Legislation to Expand PPP to Local Media

RADIO ONLINE | Wednesday, May 13, 2020 | 5:16pm CT

U.S. Congress

The U.S. Senate has introduced legislation to expand eligibility for SBA loan access to struggling local radio stations, following draft legislation introduced by the House of Representatives on Tuesday. 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 applauds Sens. Cantwell, Boozman, Klobuchar, Ernst and Schumer for introducing bipartisan legislation that would expand access to Small Business Administration loans for local radio and television stations under the Payroll Protection Program. Advertising losses have devastated the local media business in recent weeks at a time when credible, lifesaving local news and information is needed most. Broadcasters look forward to working with Congress to ensure that this legislative language is included in future Coronavirus economic relief efforts to help preserve local media and local journalism."

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.