Second PPP loan possible with new bill proposal

Businesses with fewer than 100 employees may be able to draw once again from the Paycheck Protection Program, according to a report from Fox Business.

On June 18, the Prioritized Paycheck Protection Program Act was introduced by Sens. Ben Cardin, D-Md., Chris Coons, D-Del. and Jeanne Shaheen. The proposal would allow small businesses to receive a second loan if they have exhausted (or on track to exhaust) funds from the first PPP loan and can prove they have lost half of their revenue as a result of COVID-19.

The bill would also extend the loan application deadline for businesses from June 30 to Dec. 30 or later, according to Fox Business.

“Many small businesses will continue to struggle in the weeks and months to come,” Sen. Cardin said in a statement. Cardin is also the ranking member of the Senate Small Business Committee. “Congress must once again act urgently to support our most vulnerable small businesses through this crisis, so our economy can recover as quickly as possible after the pandemic. Every business we prevent from failing now, is a business that will be in a position to create jobs during the recovery,” he said.

The senators argue some small businesses are still struggling because the shutdown has lasted longer than originally anticipated when Congress put together the program.

“In conversations with small businesses up and down the state of Delaware, it’s become clear that many employers in vital sectors need more federal aid through the Paycheck Protection Program. Even as closures are ending, countless Delaware businesses are struggling to survive this crisis,” said Sen. Coons in a statement.

Under the aid program, businesses can receive up to $10 million taxpayer-funded loans that will be forgiven by the federal government if at least 60 percent goes toward maintaining payroll, according to Fox Business. As of Friday, more than 4.5 million loans worth close to $514 billion had been distributed through the program. Congress allocated about $600 billion to the PPP, leaving roughly $100 billion left over in the fund.

There are roughly 30 million small businesses in the U.S. that employ about 58.9 million workers, or about half of the total U.S. workforce.

The Trump administration has previously said it does not intend to pass more relief measures until at least the beginning of July, although the Senate is not scheduled to return from its two-week recess until July 20, according to Fox Business’ report.