The Motor & Equipment Manufacturers Association (MEMA) is pleased and grateful that the U.S. House and Senate both quickly passed the Paycheck Protection Program (PPP) Flexibility Act. Our entire sector, with nearly 900,000 employees in all fifty states, is facing significant liquidity challenges. These retroactive PPP reforms make important corrections that will allow small businesses to participate in the program. For example, the PPP Flexibility Act expands the deadline for loan use and forgiveness from June 30 to December 31. It also raises the limitation of loan use to non-payroll expenses from 25 to 40 percent. These give the PPP a longer-term simulative effect.
Now, MEMA’s medium sized and larger members need the Main Street Lending program to be launched without further delay, ideally with a special focus on the nation’s largest manufacturing sector, motor vehicle parts. The goal should be to provide immediate additional liquidity to sectors like ours, which has faced extreme challenges in the Coronavirus pandemic. We want to be able to continue to safely ramp up production of vehicle parts, which are critical for the success of U.S. automotive industry.