The Paycheck Protection Program expires today

      Published on Monday, 17 August , 2020      100 Views     
The Paycheck Protection Program expires today

The Paycheck Protection Program, which helped keep more than 5 million small businesses afloat during the coronavirus pandemic, expires today with no clear consensus about its future.

Discussions on Capitol Hill about refashioning the PPP program have stalled amid a larger stalemate between congressional leaders and the White House over another round of stimulus relief. There is bipartisan sentiment to extend the program in a way that helps even smaller businesses survive but there is disagreement over exactly how to do that.

Without a broad stimulus deal, President Donald Trump Friday threatened to issue several executive orders aimed at helping the economy but none of them would extend the small business loan program.

Advocates for mom-and-pop businesses are angry about the inaction.

“PPP is about to expire, and Congress is not prepared to provide any additional help to small businesses on the brink of collapse,” said John Arensmeyer, founder and CEO of Small Business Majority, an advocacy group which claims a membership of 65,000 nationwide. “There are a number of small businesses in our network that cannot survive even one more month at the current rate of business without more help.”

A survey of its members by the organization found that 80% of small business owners would like to take a second PPP loan. Without a second loan or other stimulus relief, nearly half – 44% – of members said they would be unable to survive another six months.

The PPP fund has about $130 billion left from the roughly $650 billion Congress provided.

Many businesses have credited the program with keeping them alive when much of the economy closed down in the spring. But the need for such assistance has been alleviated somewhat by the decision by many state and local governments to ease social distancing restrictions.

Under the program, businesses with 500 or fewer workers are eligible for loans up to $10 million, which become forgivable if at least 60% of the amount is spent on payroll.

Senators are in discussions to revamp the program so that smaller businesses could apply for a second loan with Republicans saying those with up to 300 workers should be eligible and Democrats proposing a cap of 100 employees.

Category USA Business | 2020/08/17 latest update at 1:40 PM
Source : US Today | Photocredit : Google
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