Here’s what you need to know.
Many business owners have now used up their PPP loans and without further assistance may again face the possibility of laying off workers. This week, an NFIB survey found 71% of small-business owners have used their entire PPP loan and 46% will need additional help over the next 12 months.
Senate Republicans unveiled their opening bid for the next stimulus package this week, calling it the HEALS Act. Part of that plan includes allowing some businesses to take a second PPP loan. On the Senate floor, Sen. Marco Rubio (R-FL) — Chairman of the Senate Small Business Committee — said the government has an obligation to help businesses it forced to shut down for the public good.
“Otherwise we will lose not just the backbone of our economy, but the millions of jobs that come with it and the impact would be catastrophic,” said Rubio.
Rubio’s plan would allow businesses with fewer than 300 employees and who have seen a 50% drop in revenue to take a second PPP loan. The Republican plan would also allow business owners to use PPP dollars for expenses like personal protective equipment, though 60% of the loan would still have to be used on payroll in order to be forgiven.