There’s little doubt that the Paycheck Protection Program’s current deadline of March 31, 2021, will once again get extended.
The Senate is readying a vote—likely early next week—on a bill that would push the deadline to apply for a forgivable loan for another two months, as well as provide the Small Business Administration extra time to process loans received prior to the newly proposed end date of May 31. A companion bill passed the House last week.
But this likely won’t be the last PPP legislation, Inc. reports. While the House approved the measure by a wide majority, with just three members dissenting, the back and forth in the Senate offered a glimpse of changes that may be in store for the program.
Here are three ways the PPP could change beyond its imminent stay of execution:
1. Restrict the SBA’s ability to play favorites. Sen. Marco Rubio, R-Fla., expressed interest in preventing the SBA from prioritizing certain PPP applicants over others, beyond what’s in the statute.
2. Allow solopreneurs to apply for retroactive funding. On Feb. 22, the Biden administration announced a change to the formula that sole proprietors, independent contractors, and self-employed entrepreneurs use to calculate their PPP loan. A bevy of senators including Ben Cardin, D-Md., chair of the Senate Committee on Small Business and Entrepreneurship, and Joni Ernst, R-Iowa, say they would back retroactivity for these borrowers.
3. Allow borrowers to apply for both a first and second-draw loan regardless of the eight-week window. Currently, there’s nothing stopping borrowers from applying for their first- and second-draw loans. However, first-draw borrowers do need to wait eight weeks—that is, the minimum covered period—and spend down most or all of their first-draw loan’s proceeds before they can access a second-draw loan. There is interest in reducing this window or even dispatching it altogether. Read the full story from Inc.