Written Testimony for SB 372
On April 6, your Chamber of Commerce submitted written testimony to the Senate Committee on Finance in support of Senate Bill 372. We have witnessed first-hand the devastating impact of COVID-19 on our regional economy. The pandemic forced the closure of hotels and the cancellations of many meetings, conventions and leisure travel, the complete or partial closure of hundreds of small and large businesses, and the overall slowdown in economic activity.
One of the most effective economic relief measures for our members was the Paycheck Protection Program (PPP), passed as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP has been instrumental in helping small businesses across the state and in San Antonio keep their doors open. If Texas businesses will have to pay taxes on these forgivable loans, it could be the final nail in the coffin for many employers.
Senate Bill 372, sponsored by Sen. Kelly Hancock, will ensure businesses do not face an unintended consequence of higher franchise tax liability due to participation in the PPP program, which is critically important as they are trying to use every tool available to stay in business and make payroll. We believe Senate Bill 372 will provide certainty and stability for businesses and employees in Texas as they recover from the impacts of COVID-19.