The United States is giving its small business loan program another chance. Nearly a third of Covid-19’s new $ 900 billion aid package will go into the extension of the Paycheck Protection Program, or PPP, designed to save jobs in small businesses through another $ 284 billion in loans forgivable.
The original version, which was part of the CARES Law passed in March, was criticized for granting a large part of the funds to larger companies and for its lack of transparency and uneven distribution. The new round seeks to resolve some of these problems – for example, by channeling some of the funds through community lenders who serve low-income borrowers.
Companies that have already obtained a PPP loan will be eligible to apply for the extension. Here is a look at the main features of both versions:
The Small Business Administration, which will administer the program, has 10 days from the date of signature of the bill to issue the new implementation rules.