TOPLINE
Senator Marco Rubio (R-Fla.) told Fox News on Wednesday that he believes there is enough support in Congress to extend the eight-week period that Paycheck Protection Program loan recipients have to use the money—this would be a big deal for businesses that may otherwise fail to bounce back before the existing forgiveness period is up.
Senator Marco Rubio talks to reporters as he leaves a briefing for senators by officials from the ... [+]
KEY FACTS
“Democrats have told me they agree on extending the time frame,” Rubio said, indicating that there is “unanimity” in Washington for revising the law; the SBA began accepting applications for PPP loans on April 3, 2020, meaning that businesses who received their money quickly are coming up on the end of their forgiveness period sometime in early June.
He indicated that the spending period should be extended to 12 or 16 weeks because of how the coronavirus crisis has evolved. Rubio said he hopes that Congress can pass a “clean bill”—one with only this provision included to avoid any snags in the House or the Senate.
Last week, Representative Dean Phillips (D-Minn.) and Representative Chip Roy (R-Tex.) introduced a bill that would extend the forgiveness period to include the full duration of the crisis, along with several other changes to the PPP; Representative Phillips indicated that he expects the House to vote on that bill before the end of the month.
The $3 trillion Heroes Act, passed by Democrats in the House last week, also includes provisions that would modify the PPP, but Senate Republicans have said they will reject the bill in its current form.
President Trump said Monday that he supports extending the loan forgiveness period to 24 weeks, and Treasury Secretary Steven Mnuchin has said the administration is working on a “technical fix,” The Hill reports, though he did not commit to the 24-week change.
Big number
As of May 16, 2020, more than 4.3 million PPP loans worth over $513 billion had been distributed.
Key background
The Paycheck Protection Program was included in the $2.2 trillion CARES Act, the historic economic stimulus package passed by Congress at the end of March. It was intended as a lifeline for small businesses struggling in the wake of the coronavirus crisis and offered forgivable loans to cover two months’ worth of payroll and overhead costs. The program got off to a rocky start, with a rushed launch and computer glitches. After an initial $350 billion allotted to the PPP ran dry in just two weeks, lawmakers scrambled to replenish the program with another $310 billion.
Further reading
Today Is The Last Day To Give Back PPP Loans (Forbes)
Five Numbers That Sum Up The Troubled PPP Program (Forbes)
Potbelly, Shake Shack, Axios: Here Are All The Companies Returning PPP Money After Public Backlash (Forbes)
Feds Announce First Arrests In Country Linked To PPP Loan Fraud (Forbes)
