Trump Extends Payroll Protection Program Another Five Weeks
People have another 5 weeks of payroll protection as Trump Signs PPP Extension Bill.
PPP Extension Details
- The PPP was originally slated to close down last Tuesday. The Senate unexpectedly approved the new legislation by unanimous consent on Tuesday evening, and the House followed suit on Wednesday.
- $130 billion in loan money allocated to the $670 billion program remains unspent.to
- Treasury Secretary Steven Mnuchin said that the next round of small business aid will need to be “more targeted” to the specific industries that are struggling the most, like hotels and restaurants.
A Small Business Proposal by Democratic Senators Chris Coons (Del.) and Jeanne Shaheen (N.H.) would extend the bill until December 30 for businesses with 100 employees or less.
The bill authorizes new lending under the Paycheck Protection Program (PPP) to small businesses with 100 employees or less, including sole proprietorships and self-employed individuals. Eligible businesses must have already expended an initial PPP loan, or be on pace to exhaust the funding, and must demonstrate a revenue loss of 50 percent or more due to the COVID-19 pandemic. The bill would extend the application deadline for initial PPP loans from June 30 to December 30, or longer, at the discretion of the Small Business Administration (SBA), and would use existing PPP funding to make P4 loans.
That bill did not pass but the ideas regarding the number of employees and revenue loss may make Mnuchin's implementation plan.
The Treasury department changed requirements in the initial program so many times and many businesses were shamed into returning billions of dollars.
That accounts for the $130 billion in the original program that remains unspent. Will the implementation be smoother this time?