As the Paycheck Protection Program ends today, there’s surprisingly little argument on Capitol Hill about what to do with the $125 billion that remains in the program, Inc. reports.
In recent weeks, lawmakers have been increasingly voicing support for the Prioritized Paycheck Protection Program Act, or P4, which would extend the application deadline for PPP loans from June 30 to Dec. 30, or longer. The final deadline as well as administration of the program would be left up to the U.S. Small Business Administration.
The program, which would be open only to companies that have already exhausted or are about to exhaust their PPP loans, calls for stricter eligibility requirements and creates additional carve-outs for companies hardest hit by the pandemic. Publicly traded companies would be barred from participating.
While terms and conditions could change, here are a few provisions currently included in P4:
• Small businesses—including sole proprietors and self-employed individuals—with 100 or fewer employees may access the program; the original PPP allowed companies with 500 or fewer employees to participate.
• Companies must demonstrate that the pandemic caused revenue loss of 50% or more. It’s unclear over what period businesses would need to show the loss. Under the original version of the PPP, companies needed only to show that they expected to be harmed by the pandemic.
• The lesser of $25 billion or 20% of P4 funds would be earmarked for businesses with 10 or fewer employees, as well as for small businesses in underserved and rural communities.