Small business owners may get a second bite at the coronavirus relief apple under proposed legislation that would extend the Paycheck Protection Program.

The Prioritized Paycheck Protection Program (P4) Act would allow businesses with fewer than 100 employees to apply for a second loan if they have used up (or are on pace to exhaust) their first PPP loan and can show a 50% loss in revenue due to the COVID-19 pandemic.

Democrats have introduced Senate and House versions of the bill, which has bipartisan support.

“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, said Maryland Democrat Sen. Ben Cardin, a co-sponsor of the bill.

Congress has provided $659 billion for the PPP, the centerpiece of the $2 trillion CARES Act. It offered partially forgivable loans to small businesses to cover payroll costs for eight weeks.

But lawmakers say small businesses are still struggling because the COVID shutdown has lasted longer than originally anticipated when Congress put together the PPP.

“It’s become clear that many employers in vital sectors need more federal aid through the Paycheck Protection Program,” Sen. Chris Coons, a Delaware Democrat, said.

The P4 bill would set aside the lesser of $25 billion or 20% of PPP funds for employers with fewer than 10 employees and businesses in underserved and rural communities. It also directs the Small Business Administration to issue guidance to lenders to give priority to the smallest businesses.

Publicly traded companies would not be eligible and hospitality and lodging businesses with multiple locations would be limited to an aggregate loan amount of $2 million.

Kevin Kuhlman, vice president of federal government relations for the National Federation of Independent Businesses, said the 50% revenue loss provision could be a problem for many small businesses.

“If a business has had 25 percent or 30 percent revenue loss and they have high fixed costs or accounts payable, then they’re going to be struggling as well,” he told Yahoo Finance.

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12 responses to “New Bill Offers Second Loans to PPP Borrowers”

  1. Need the second ppp because of slow opening of economy. The priority should be given to the. Sad mall business with less than 10 employees.

  2. Child care is my passion, I totally appreciate the PPP loan program need a second to sustain us until the economy revives

  3. Agree with the assessment that a 50% loss of revenue threshold may be too stringent. I’ve spent one round of PPP, it was a godsend and kept my staff of 15 off of unemployment. Now we’re operating off our reduced revenue, which is down about 35% and it’s a struggle. The pandemic is lasting a lot longer than anyone expected. If we can just get some extra help, I know we can see it through, bounce back and save jobs.

  4. I am a small business in the entertainment world of kids and families. As long as schools, camps and kid group activities are not happening, we will not be able to survive. We are still struggling to pay the bills, people are not patronizing businesses because they are still scared to come out. We have been surviving on loans alone. When that runs out and business doesn’t pick up, I don’t know what is going to happen to small businesses.

  5. I fully support this action. Our business is down 99 % and there is no sign of reopening.
    Our first PPP is almost out.
    We are in the event planning sector. There are no parties till April of 2021.

  6. Restaurants shut down again. We cant survive on togo and patio dining. It was already a slow restart when we could open, not to mention the added costs of ppe and other measures to make inside dining safe.. we are going to need some help.

  7. We are a small training company and have used the first PPP to keep our employees on the payroll. However, our business revenue is down 25% and the rent, loan payments on equipment, insurance, and worker’s comp costs just keep on rolling.
    Another PPP would keep us going. Also, making the forgiveness application easy or none at all for those of us that got $60K or less would help keep our accounting costs down as well.

  8. Agree with the assessment that a 50% loss of revenue threshold may be too stringent. The pandemic is lasting a lot longer than anyone expected. If the real intentions is to help small business survive, the assessment of a 50% loss proof is a killer to small business when they already know what is going on.

  9. The real struggle is for those who received ppp loans early on, followed the initial directions of treasury and spent funds within first 8 weeks, and now running on fumes. Changes communicated back out in the 8th week of the loan helped none of the first PPP loan recipients.

  10. I’m an owner operator sole proprietor. Ive had a significant loss of income and revenue because of this various. I took the first ppp. Are we able to apply for a second. Our freight has severely slowed.

    • As of now there is no deal in Congress for a second round of PPP loans. There is legislation written, but the Democrats and Republicans seem far apart on any wide-ranging relief package, which would probably, but not definitely, include a second around of PPP. Keep hammering your Congressional representative and Senators and let them know of your business’s struggles.

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