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PPP application window closing today

As the loan application closes Tuesday, fear remains that the financial fallout isn’t over.

Three months since the Trump administration launched the pandemic aid program for small businesses worth $670 billion, the window to apply ends Tuesday with about $134 billion in funds obtainable as of Monday night, reports The Wall Street Journal.

The leftover surplus has begun a new debate over what to do with the remaining funds.

Many individuals remain concerned, believing the financial fallout caused by COVID-19 isn’t finished yet.

“We should be centered on protecting as many companies viable as attainable in order the economic system reopens—we are able to see that’s already going to occur in matches and begins—that they can begin to regrow and repurpose themselves,” John Arensmeyer, chief of the advocacy group Small Enterprise Majority said to The Wall Street Journal.

Congressional aides mentioned there’s bipartisan assist for permitting the leftover funds for use for small enterprise aid, although there hasn’t been a consensus.

Senate Democrats have proposed laws that may enable small companies to take out a second PPP mortgage if they’ve 100 or fewer staff, reports The Wall Street Journal. Before, the system was usually open to corporations with 500 or fewer staff.

To qualify, companies should reveal an income lack of 50% or extra due to the pandemic and have already spent an preliminary PPP mortgage or be on tempo to take action.

“Many small companies will proceed to battle within the weeks and months to come back,” Ben Cardin (D., Md.), the highest Democrat on the Senate Small Enterprise Committee said in an announcement. “Each enterprise we stop from failing now could be an enterprise that will likely be ready to create jobs through the restoration.”

Beginning Tuesday, Sens. Kevin Cramer (R., N.D.) and Kyrsten Sinema (D., Ariz.) plan to introduce laws that may forgive all loans below $150,000, reports The Wall Street Journal

A June 16 survey of enterprise house owners by the Nationwide Federation of Unbiased Enterprise confirmed 81% of respondents utilized for PPP loans—and practically all of them had obtained funds of their financial institution accounts, according to The Wall Street Journal. A majority of PPP debtors (86%) said they don’t anticipate dropping any staff after receiving the funds.