A second round of the Paycheck Protection Program (PPP) loan that lawmakers are looking to include in the next COVID-19 relief package would expand eligibility and give businesses more flexibility, a leading GOP lawmaker said Thursday.
representative Steve ChabotSteven (Steve) Joseph Chabot Liberal Group Launches Campaign Calling Republicans to Support Biden’s Agenda (R-Ohio), the senior member of the House of Representatives Small Business Committee, said components of a $ 908 billion non-partisan coronavirus aid proposal circulated this week would accommodate companies with very few employees, create new eligibility requirements for a second loan, and simplify the lending process.
“We are close to having a second round of PPP loans available and there would be a shutdown for micro-businesses that have 10 or fewer employees,” said Chabot at The Hills Doing Better in America event.
“A lot of them weren’t tough enough to get into the first round,” he told Steve Clemons of The Hill. “We want to make sure that those who didn’t get one in the first round, or companies that might have got one, really need a second loan so that they are both eligible.”
PPP loans have gained bipartisan support, although it has been criticized that many of the first-round loans were obtained from larger companies.
Congressional leaders have indicated that the next coronavirus bailout package is likely to include a new round of PPP loans, but negotiators have not yet made a breakthrough in months of talks.
Other changes to the bipartisan proposal highlighted by Chabot include adjustments to the adoption of PPP loans.
“We’re trying to make it easy so people don’t have to pay back this loan. That was the idea when we passed this PPP program that it was largely forgivable loans, ”said Chabot, who will succeed Rep next month. Blaine LütkemeyerWilliam (Blaine) Blaine LuetkemeyerSmall business group launches bus tour against Biden agenda Republicans in Missouri want to block Greitens in important Senate race (R-Mo.) As the top Republican of the Small Business Committee.
Chabot noted that the proposal also seeks to make the lending process easier for borrowers.
“We’re also trying to make the forgiveness process more flexible for people because right now the people who have the loan are going in and trying to make sure they don’t have to pay back the loan and it can be a nice paperwork-intensive project,” he said at the event sponsored by Philip Morris International.
.@RepSteveChabot: “We have to educate the new members who come here for Congress … who may not know how important small businesses are or what they are dealing with.” #TheHillInnovators https://t.co/te3Bu7IUFi pic.twitter.com/lWnOw0MpeT
– The Hill Events (@TheHillEvents) December 10, 2020