(STAFF REPORTS/Chewelah Independent)
The Paycheck Protection Program (PPP) will continue until August 8 after President Trump extended the emergency federal loan program another five weeks to buy Congress time to figure out the next round of stimulus measures during the COVID-19 pandemic, Forbes is reporting. The PPP was originally slated to close on Tuesday but the Senate was able to approve new legislation on Tuesday evening and the U.S. House approved the legislation on Wednesday.
There is still $130 billion in unspent money from the $670 billion program. So far, 4.8 million PPP loans have been approved.
When Congress returns from the holiday recess, it will work on allocating the remaining money of federal aid to small businesses. Treasury Secretary Steven Mnuchin said that the loans will have to be targeted towards struggling industries like hotels and restaurants. Democrats are proposing to allow businesses with fewer than 100 employees to take out a second PPP loan from the remaining funds.
Treasury Secretary Steven Mnuchin has said that the next round of small business aid will need to be “more targeted” to the specific industries that are struggling the most, like hotels and restaurants.
Another popular Democratic proposal would allow businesses with fewer than 100 employees to take out a second PPP loan from the remaining funds.
This is part of the $2.2 trillion CARES Act which was signed into law at the end of March. The PPP was to provide forgiveable loans to cover payroll and overhead expenses after the COVID-19 pandemic hit businesses hard. When first started, the PPP program ran out of money in two weeks and Congress had to approve another $310 billion to be used.