When the Trump administration first launched its $670 billion pandemic aid program for small companies, a mad sprint to safe forgivable loans had many enterprise house owners apprehensive there wouldn’t be sufficient cash to go round.
Three months later the appliance window for Paycheck Safety Program loans closes Tuesday with about $134 billion in funds obtainable as of Monday night. That surplus has triggered a brand new debate over what to do with the remaining funds, as fears mount that the financial fallout from the Covid-19 disaster is much from over.
“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,” mentioned John Arensmeyer, chief govt of Small Enterprise Majority, an advocacy group.
Congressional aides mentioned there’s bipartisan assist for permitting the leftover funds for use for small enterprise aid, though there isn’t but consensus on how to take action.
Senate Democrats have proposed laws that may enable small companies to take out a second PPP mortgage if they’ve 100 or fewer staff. Beforehand this system was usually open to corporations with 500 or fewer staff.