A relief program that threw a critical lifeline for small businesses during the coronavirus pandemic is due to expire on Saturday, with more than $ 130 billion remaining in the fund.
The $ 670 billion payroll program, set up when Congress passed the CARES Act in late March, will officially be close to new candidates. August 8. Approximately $ 138 billion remains in the fund, which has actually increased since the end of June, in part because loans were canceled and duplicate reporting loans were erased.
TRUMP ADMIN FULFILLS NAMES WITHOUT COMMISSION 700,000 PPP CREDITORS
Since the launch of the program in early April, more than 5.1
But as Democratic leaders and White House officials struggle to negotiate the next round of emergency relief, some lawmakers are discussing what to do with the remaining PPP money amid a resumption of COVID-19 cases and a new round of business shutdowns. which threaten to slow down – or vice versa – the gradual recovery of the economy.
Under a $ 1 trillion stimulus proposal unveiled by Senate Majority Leader Mitch McConnell last week, the money will be reimbursed for more targeted assistance to the most affected small businesses that could apply for a second PPP loan.
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Firms that saw revenue decline by 50 percent or more in the first or second quarter of this year (compared to last year) may plunge into PPP for a second loan.
The aid will be limited to companies with no more than 300 employees, which is lower than the initial limit of 500 workers set out in the CARES Act. Part of the money will be set aside for companies with less than 10 employees.
The proposal prepared by Senator Marco Rubio, R-Fla. And Sen. Susan Collins, R-Maine, would also ease some of the restrictions on taxpayer-funded money. For example, businesses will be allowed to use the loan to purchase personal protective equipment for workers, investments that senators said were needed to ensure owners managed their businesses safely during the pandemic.
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Rubio and Collins called on Congress to agree on expanding PPPs as talks on a broader stimulus bill take place.
“Congress has agreed unanimously on PPPs three times, which is a testament to the success of the program to save tens of millions of jobs and prevent widespread small business bankruptcies,” Rubio said in a statement, adding: “I hope my Democratic colleagues can once again rejoin Republicans, set politics aside, and act decisively to help our nation’s small business and the tens of millions of American workers who work. “
There are fears that as PPP money fades, small businesses may see a wave of layoffs: According to a recent study published by the National Federation of Independent Business, 14% of companies that have received PPP assistance are considering firing employees after running out. the money. At least 70,000 of these companies plan to lay off at least 10 workers.
Another proposal submitted in May by Sens. Todd Young, R-Ind. And Michael Bennet, D-Colo., Is seen as another alternative to expanding PPP. The RESTART Act will create a new, longer-term program for federally guaranteed loans with low interest rates, some of which will be forgivable, with conditions of up to seven years for businesses with no more than 5,000 employees.
“After talking to some of the most affected businesses, it is clear that more is needed to help job creators navigate this pandemic,” Young said in a statement.
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