Republicans need to ship second spherical of PPP loans to smaller, hard-hit companies

The lead authors of the favored small enterprise lending initiative referred to as the Paycheck Safety Program (PPP) need the subsequent spherical of loans to concentrate on smaller companies which have suffered deep losses due to the coronavirus pandemic.

Senate Small Enterprise Committee Chairman Marco RubioMarco Antonio RubioCongress set for messy COVID-19 talks on tight deadline McConnell, Rubio defend senior intel official over remarks on election interference GOP senators push for stimulus checks to virtually 2M excluded People MORE (R-Fla.) and Sen. Susan CollinsSusan Margaret Collins100 Days: Democrats see clear path to Senate majority VOA visa resolution may hobble Venezuela protection The Hill’s Marketing campaign Report: Campaigns put together for homestretch run to Election Day MORE (R-Maine) launched their plan Monday afternoon as a part of a broader rollout of GOP proposals for the subsequent section of coronavirus reduction laws.

The plan would permit the hardest-hit small enterprise homeowners to obtain a second PPP forgivable mortgage.

Rubio and Collins say one other spherical of PPP loans needs to be restricted to companies with not more than 300 workers, coming down from the 500-worker restrict initially set within the third coronavirus stimulus invoice handed in March. 

The reform plan may also embrace a income take a look at, limiting loans to companies which have misplaced a minimum of of 50 p.c of income in comparison with a earlier yr’s quarter.   

It will additionally broaden the checklist of bills for which PPP loans can be forgiven to incorporate investments to guard workers and prospects corresponding to masks, plexiglass shields, and improved H-VAC local weather methods.

“We at the moment are starting to see that because the PPP funds are being exhausted, some firms are having to face as soon as once more the potential of getting to put off a few of their staff. And in order that’s why it’s time for a second spherical of PPP help,” Rubio stated on the Senate flooring Monday, unveiling the plan.

A portion of PPP loans might be put aside for companies with 10 workers or much less. 

“A few of these funds might be put aside for employers which have ten workers or much less to guarantee that the cash doesn’t run out with out that group of small companies getting the help they want,” Rubio stated. 

Collins, who’s up for re-election in November, stated this system has been important to her residence state’s economic system.

“Greater than 76 p.c of Maine’s small companies have reported receiving a PPP mortgage. An estimated 76 p.c of Maine jobs have been supported by this critically necessary program,” Collins stated on the Senate flooring Monday afternoon.

Collins additionally unveiled a number of the particulars of this system throughout a radio look Friday. 

“It will give one other spherical of Paycheck Safety Program forgivable loans to our small employers that preserve workers paid, they both retain them, recall them or preserve sending them paychecks,” Collins stated when she unveiled her plan Friday on Maine radio. 

Collins famous that the eight weeks of the Paycheck Safety Program arrange by the CARES Act has expired.

She says the brand new GOP proposal “would permit a second PPP mortgage for the toughest hit companies.”

“They must be below 300 workers, they couldn’t be publicly traded they usually must present that they’ve had a income decline of 50 p.c in comparison with the same quarter final yr,” she stated.

“I can inform you, having talked to numerous restaurant homeowners and B and B and inn and lodge operators, that a lot of them will simply meet that threshold,” she stated.

Collins stated small enterprise homeowners say the primary spherical of PPP loans helped save their companies however they’re nonetheless below risk. 

“There are companies on the market that want a second mortgage to outlive,” she stated.

Rubio and Collins are additionally proposing particular longer-term, low-interest loans for companies in low-income neighborhoods. 

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