Prioritized Paycheck Protection Program Act | OH | KY | IN

Small Businesses May Get Second Bite at the PPP Apple

Published on by Andy Bertke in COVID-19

Small Businesses May Get Second Bite at the PPP Apple

A new bill, the Prioritized Paycheck Protection Program (P4) Act, was introduced in the Senate on June 18, and if it becomes law, it will allow certain small businesses to apply for a second Paycheck Protection Program loan (PPP).

The PPP – which offers loans that can amount to as much as $10 million and can become grants if the dollars are spent mostly on payroll – is set to expire June 30. As of this writing, the PPP still had almost $130 billion in funds remaining. A provision in the program states that any unused funds should be sent back to the Treasury unless Congress approves another use. The bill introduced would use existing PPP funding to make additional targeted loans, rather than drawing up new sources of funding.

Many businesses that have continued to struggle due to the effects of the long-term shutdown may not be able to survive unless additional funds are made available. Fortunately, there are many in Congress that understand that 1) the shutdown lasted longer than originally anticipated, and; 2) every small business that recovers means a business that that can create jobs and expedite the overall economic recovery.

The Small Business Administration (SBA) has already approved more than 4.6 million loans, which totals more than $513 billion in loan dollars. However, lawmakers and groups representing small businesses say that many firms either need more help or were unable to tap relief funding. This is especially true for independent contractors, the self-employed, and minority-owned and other disadvantaged businesses.

The concept of the P4 loan is to get funds to the businesses that are struggling the most. Eligible businesses are those with fewer than 100 employees who have used up or are on-pace to exhaust their first their first PPP loan and can show that the business had a 50% loss in revenue due to the COVID-19 pandemic.  In addition, the business must show it needs the money for payroll and eligible non-payroll costs.

The bill would also extend the application deadline for PPP loans from June 30 to December 30, and the deadline for a second loan would be October 1. The SBA Administrator would have the discretion to extend the deadline if needed.

Have a question about PPP loans, loan forgiveness, or other aspects of the CARES Act? Our COVID-19 Advisory Team can help. Contact us to find out more, and to start building peace of mind.

Additional Resources

Visit Barnes Dennig’s COVID-19 Resource Center for a comprehensive list of resources. Please contact our COVID-19 Advisory Team or any of our leadership team at Barnes Dennig to discuss.

Barnes Dennig COVID-19 Advisory Team


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