WASHINGTON – Today, House Committee on Small Business Ranking Member Steve Chabot (R-OH) introduced a bill that would reopen the Small Business Administration (SBA) Paycheck Protection Program (PPP) to America’s 30 million small businesses.
“Congress must come together to help our nation’s small businesses. They create two out of three new private sector jobs and make the American Dream possible for millions of Americans. While many are thriving, others still need help,” said Ranking Member Chabot. “The legislation I introduced today would ensure our nation’s smallest and most vulnerable firms get the support they need to rebuild stronger than ever.”
Creates Opportunity for Second PPP Loan
- Small businesses, nonprofits, independent contractors, and sole proprietors may qualify for a second Paycheck Protection Program loan if they meet the following criteria:
- Employs not more than 300 employees or meets the eligible SBA size standard; and
- Had at least a 25 percent reduction in gross revenues.
- The maximum loan amount is reduced to $2 million and a business can’t exceed $10 million in combined PPP loan funds.
Allots Money for Mom and Pop Shops
- $25 billion is allotted for small businesses with 10 or fewer employees.
Extends Program Duration
- The bill extends the Paycheck Protection Program until December 31, 2020, or until appropriated funds are exhausted.
Expands List of Covered Expenses
- The bill adds more eligible covered expenses:
- Covered operations expenditures, including software and cloud computing.
- Costs related to property damage as a result of vandalism and looting that are not covered by insurance.
- Covered supplier costs.
- Materials needed to protect worker safety, like personal protective equipment.
Simplifies Forgiveness Process
- The bill clarifies the forgiveness process for loans under $150,000 and loans between $150,000 and $2 million.
The full text of the bill is here.