U.S. Sens. John Thune (R-S.D.), chairman of the subcommittee on Communications, Technology, Innovation, and the Internet, and Amy Klobuchar (D-Minn.), a member of the Senate Committee on Commerce, Science, and Transportation, last week urged the Department of the Treasury and Small Business Administration to confirm telecommunications cooperatives organized as 501(c)(12)s under the Internal Revenue Code are eligible to obtain a loan through the Paycheck Protection Program.
“As you know, this interim final rule clarifies that electric cooperatives organized under 501(c)(12) of the Internal Revenue Code are eligible for a PPP loan,” the senators wrote. “While we appreciate this clarification, to mitigate any possible ambiguity, we respectfully request further clarification confirming that this applies to all 501(c)(12) utility cooperatives, including telecommunications cooperatives. Telecommunications cooperatives provide voice and broadband connectivity to their customers, services which have never been more essential as Americans are teleworking, utilizing distance learning, and relying on telehealth services.”
Full text of the letter below:
Dear Secretary Mnuchin and Administrator Carranza:
Thank you for your ongoing efforts to implement the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Paycheck Protection Program (PPP) to help small businesses across the nation and their employees get through this challenging time. We write today in response to the interim final rule published on May 14, 2020, for 501(c)(12) cooperatives.
As you know, this interim final rule clarifies that electric cooperatives organized under 501(c)(12) of the Internal Revenue Code are eligible for a PPP loan. While we appreciate this clarification, to mitigate any possible ambiguity, we respectfully request further clarification confirming that this applies to all 501(c)(12) utility cooperatives, including telecommunications cooperatives.
While electric cooperatives provide their customers with electricity, telecommunications cooperatives provide voice and broadband connectivity to their customers, services which have never been more essential as Americans are teleworking, utilizing distance learning, and relying on telehealth services. Therefore, it seems appropriate that additional clarification and confirmation be provided to ensure that telecommunications cooperatives also organized as 501(c)(12)s can use the PPP loan program without any uncertainty.
Thank you for your consideration of this request and for your work in helping our nation’s small businesses through this challenging time. We look forward to seeing this issue resolved and respectfully ask for clarification before Monday, May 18, 2020.
Sincerely,
