Businesses struggling to stay afloat amid coronavirus pandemic but excluded from stimulus packages might see renewed relief as chairman Nancy Pelosi (D-Calif.) And the House decide to rework the paycheck protection program (PPP).
The strict terms of the repayable PPP loans ended up excluding some of the most needy small businesses, prompting leaders of both parties to find a solution. Many small and medium-sized enterprises (SMEs) said they could not meet conditions such as rehiring all laid-off employees and using all the money within eight weeks.
“In this case, we were hearing the exact same thing from all the small businesses in our districts,” the representative said. Dean Phillips (D-Minn.) Said Politics concerning the bill under preparation with Rep. Chip Roy (R-Texas). “We were perfectly aligned and we both recognized that in order to move legislation under these circumstances there has to be a bipartisan genesis.”
House leaders hope to vote next week on bipartisan legislation that would open up the loan program to more businesses trying to survive unprecedented shutdown and stay-at-home mandates.
“These provisions are not political,” said Roy, who worked on the changes with Phillips. “These arrangements are generally well accepted, generally bipartisan, generally desired by small businesses across the country.”
Last week the House passed a new 3 trillion dollars relief program – dubbed the Heroes Act – to help businesses, households, local governments, the U.S. Postal Service and frontline workers. It also includes money to help people pay rent, mortgages, and utilities. Most Republicans and some Democrats are against the bill, and it is unlikely to pass the Senate.
Regardless of the proposed new funding, House and Senate leaders from all parties agreed that the problems with the SME loan program must be addressed. Restaurants, among the hardest-hit industrial sectors, said they could not apply for the loans because of the strict forgiveness requirements.
A PYMNTS study Last month, more than 1,200 SMEs reported that loans are seen not only as the ‘must-have’ protection needed to meet current challenges, but also as tools that can be used strategically to position SMEs in a post-world world. -pandemic.