If you haven’t yet, you may want to consider applying for a PPP loan (the deadline for applying has so far been extended from June 30th until August 8th with talks of extending applications through the end of the year). As with all the pandemic relief Acts, the House and Senate continue to battle back and forth proposing revisions and additions all with the common goal of pumping more money into the economy. So, what’s the difference this time?


The House’s revisions would expand forgivable expenses to include PPE and employee protection costs related to Covid-19, while The Senate’s plan would expand forgivable expenses to include covered supplier costs, covered worker protection expenditures, certain operations expenditures, and group insurance costs that are part of payroll costs. Many believe and I agree, that SBA pressure from lenders will result in turning “small” PPP loans (under $2 Million) into grants with very little effort from the recipient/borrower.


For those who have already received and exhausted their PPP funds, there may be an opportunity to obtain a second “loan” (PPP 2). After all, there is still $130 Billion available (as of 7/31) and if it’s not used it will just go back to the US Treasury. Criteria for the second loan would be based on proving losses of 50% or more in Q1 or Q2 and is geared more towards helping “the little guy” (those with fewer than 300 employees instead of 500 and with funding set aside specifically for businesses with 10 employees or less).


I will keep you updated as I learn more but here’s the good part: Under PPP 2, businesses could use the funds to purchase protective equipment for employees and customers, including masks and sanitizers. They’d also be able to use their funds for updated ventilation. A one-page summary from the Senate explains more about the PPP Second Draw Loans and the PPP improvements in this potential new law.

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