Trump Extends Payroll Protection Program Another Five Weeks

Mish

Four days ago the Senate agreed to extend the PPP program. Today President Trump signed the bill.

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?

Mish

Comments (11)
No. 1-7
JBoomBoom
JBoomBoom

Do businesses really get another 5 weeks of payroll protection or does this simply extend the deadline for businesses to apply for PPP? The former would mean all those who already received 8 weeks of protection will get another 5 weeks (about 63% more funding).

davebarnes2
davebarnes2

"for businesses with 100 employees or less."
FEWER
Unless you are counting the employee pieces parts in the sausage machine.

Stuki
Stuki

Or phrased more succinctly: Sitting officials extended a vote buying program for another five week installment, concerned that not doing so may hamper their continued access to the Gravy Train post November.

wendmink
wendmink

Truth – Facts are
Jan 2020 Jamie Dimon – JPMorgan Wednesday told the world fed Powell is no good!
Powell- Friday, same week said the banks need to run their businesses correctly
Monday – banks asked for 100 billion repo window
Same day Powell, you could see it on his face mad as hell, said ok
Tuesday – next day - banks ask for another 100 billion, Powell ok
Wednesday – next day – stock market goes up 200 billion, HMMMM
Thursday, nothing
Friday – same week, Powell says once again, banks have to run their business correctly
Monday – next week, stock market crashes, banks are pissed at Powell
Tuesday – Trump shuts down US – virus – HMMM, interesting timing
Wednesday – crash - Russia and Saudi fighting over reducing oil sells
Thursday – crash again because of virus
Friday – nothing much happen
The timing of this virus and the banks 15 trillion printed money loans to business with 50% default rate, HMMMM
The 4 central banks where broke, so poorly managed, huge bonuses to the most corrupt, greedy, self center, no conscience people.
6 months later, the useful idiots still has their finger push down on us, WHY???

Casual_Observer
Casual_Observer

Extend and pretend

Bungalow Bill
Bungalow Bill

There is an old Soviet joke, “They pretend to pay us and we pretend to work” describes this system. Or, as Margaret Thatcher said, “The trouble with socialism is that eventually you run out of other people’s money.”


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