The GOP has proposed another round of Paycheck Protection Program loans in legislation known as the HEALS Act, however not all business owners would be able to borrow again.
About $190 billion worth of PPP funding would be made available to business owners with 300 employees or fewer whose revenue declined by at least 50 percent as a result of the coronavirus pandemic.
About $25 billion would be set aside to assist companies with 10 employees or less.
In this round, the maximum loan size would equal 2.5 times the average total monthly payroll costs, up to $2 million. A company could not receive two loans that collectively exceed $10 million.
Borrowers would be able to select the eight-week period over which they prefer to use the funds and the forgiveness process would allegedly be simplified.
The range of costs considered forgivable under the terms of the “sequel” PPP program would be expanded to include expenses related to protecting both employees and customers and other costs like implementing outdoor seating at restaurants.
Sixty percent of the money, however, would still be expected to be allocated toward payroll expenses.
Florida Republican Sen. Marco Rubio also said Monday that there could be a separate loan program aiming to help seasonal businesses and those located in low-income communities.
These businesses can have no more than 500 employees and must also be able to show a 50 percent loss in revenue. Loan amounts would not exceed $10 million and would have a 100 percent SBA guarantee. The interest rate would be 1 percent and the loan’s maturity could reach up to 20 years.
Allowable loan uses include working capital, acquisition of fixed assets, and refinancing existing indebtedness.