About $670 billion was put into funding PPP loans for small businesses. As of this week, about $130 billion still remains unused. With the job growth in May, the Treasury Secretary has stated that the SBA will be relaxing who is restricted from receiving a PPP loan.
The two main relaxations:
- Small business owners with a criminal record, will be able to apply for a PPP loan if their conviction was at least 3 years ago (before it was 5 years).
- A Senator has also proposed an optional additional PPP loan for small businesses with fewer than 100 employees.
A Recap on the new biggest PPP changes:
- You can spend a bigger portion now on rent/mortgage interest and/or utilities. The limit increases from 25 percent to 40 percent (that’s the maximum; at least 60 percent of the loan must go to payroll).
- You have 24 weeks, or until December 31, 2020, whichever date comes earlier to spend your loan.
- Before, you had to pay back the unforgiven portion of your PPP loan within two years. Now it’s five years.
Stimulus Checks, Round Two?
The main reason we may see another stimulus check:
- Unemployment is lower than projections but at around 13%, government officials note if people are not rehired by their old employers, finding a new job could take some time.
If another stimulus check is in the works, we will see it, at the earliest, before November. Congress aims to discuss sending out another stimulus check at the end of July (the Senate is in recess, the first two weeks of July).
Learn more about future changes from Sarah Hasen.
Furthermore, Naeem Aslam discusses stimulus checks in his article.
Additionally, you can find when Congress is in session here.
Lastly, find more information from our previous post.