New Bill Offers Second Loans to PPP Borrowers
Little enterprise house owners could get a next chunk at the coronavirus aid apple beneath proposed legislation that would prolong the Paycheck Protection Application.
The Prioritized Paycheck Protection Application (P4) Act would permit enterprises with less than 100 personnel to utilize for a next personal loan if they have utilized up (or are on tempo to exhaust) their initial PPP personal loan and can exhibit a 50% decline in revenue due to the COVID-19 pandemic.
Democrats have launched Senate and Property versions of the monthly bill, which has bipartisan assist.
“Congress should at the time yet again act urgently to assist our most vulnerable compact enterprises by means of this disaster, so our economy can recover as speedily as probable after the pandemic, mentioned Maryland Democrat Sen. Ben Cardin, a co-sponsor of the monthly bill.
Congress has presented $659 billion for the PPP, the centerpiece of the $two trillion CARES Act. It available partially forgivable loans to compact enterprises to cover payroll expenses for eight weeks.
But lawmakers say compact enterprises are even now having difficulties because the COVID shutdown has lasted lengthier than at first predicted when Congress set together the PPP.
“It’s become crystal clear that several businesses in essential sectors need far more federal support by means of the Paycheck Protection Application,” Sen. Chris Coons, a Delaware Democrat, mentioned.
The P4 monthly bill would established apart the lesser of $twenty five billion or twenty% of PPP cash for businesses with less than ten personnel and enterprises in underserved and rural communities. It also directs the Little Organization Administration to situation advice to lenders to give priority to the smallest enterprises.
Publicly traded providers would not be eligible and hospitality and lodging enterprises with numerous destinations would be restricted to an mixture personal loan volume of $two million.
Kevin Kuhlman, vice president of federal governing administration relations for the Nationwide Federation of Independent Organizations, mentioned the 50% revenue decline provision could be a difficulty for several compact enterprises.
“If a enterprise has experienced twenty five p.c or 30 p.c revenue decline and they have superior preset expenses or accounts payable, then they’re heading to be having difficulties as effectively,” he advised Yahoo Finance.
