In the wake of COVID-19, the Federal Housing Finance Agency has instructed Fannie Mae and Freddie Mac to structure their DTS activities and objectives for 2021 as a one-year extension of their 2018-2020 Plans, rather than beginning a new three-year Plan. Read more about how MHI is engaging in this process to ensure that Fannie Mae and Freddie Mac stay on track with their ongoing development of a strong secondary market for manufactured home loans.
MHI, in partnership with more than 450 housing and business organizations, is urging Congress to support the timely, temporary and targeted liability relief provisions included in S. 4317, the “SAFE TO WORK Act.” The letter argues that as more businesses are reopening, they are making their best efforts to comply with public health guidance to protect their employees and customers. However, there is concern about a wave of frivolous lawsuits. The letter specifically asks that Congress grant a safe harbor for the duration of the pandemic crisis and response that covers those businesses that work to follow government guidance against COVID-19 exposure claims.
MHI, along with a coalition of national business associations, again called on Congress to support legislation that would forgive certain loans funded by the Paycheck Protection Program H.R. 7777, “The Paycheck Protection Program (PPP) Small Business Forgiveness Act,” sponsored by Representatives Chrissy Houlahan (D-PA) and Fred Upton (R-MI), would forgive all PPP loans of less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. PPP loans of $150,000 and under account for 86 percent of total PPP recipients, but less than 27 percent of PPP loan dollars. MHI and the coalition continue to argue that expediting the loan forgiveness process for the hardest-hit businesses will save more than $7 billion dollars and hours of paperwork. Given the ongoing challenges facing small businesses, the coalition is urging Congress to pass the legislation without delay.
MHI, along with a diverse coalition of more than 150 national trade organizations, is urging Congress to clarify the tax treatment of loan forgiveness under the Small Business Administration’s Paycheck Protection Program (PPP) in the next round of COVID-19 relief legislation.
In April, the Internal Revenue Service (IRS) issued guidance stating that tax deductible expenses covered by PPP loan funds will not be eligible for deduction. The coalition is asking Congress to include language in the next COVID-19 relief package to overturn this IRS guidance, as it conflicts with Congress’ stated intent in establishing the PPP. In the letter, the coalition requests that Congress make clear that any loan forgiveness under the PPP should be excluded from a borrower’s taxable income. The coalition is calling on Congress to reaffirm this original intent in the next round of COVID-19 relief legislation.
- Increasing the credit from 80 percent to 50 percent;
- Increasing the wage base to $15,000 per quarter for up to three quarters—previously $10,000 per year;
- Easing the qualifying rules for revenue decline;
- Including health benefits in the definition of qualified wages; and
- Allowing businesses that receive a loan through the Paycheck Protection Program loan to qualify for the credit.