Today, Republicans released the draft outline of the latest stimulus bill. While we heard rumors in June that there would be another opportunity for businesses to take PPP loans, we're finally getting more details on the framework on what this could look like.
The important caveats are this:
First, negotiations are still happening. This is just the draft framework that it seems Republicans have gathered enough support to put down on paper and share with media. Changes — in some form — are likely. Second, just like the first PPP round, the rules changed seemingly weekly. Whatever gets signed into law will still likely go through rule changes, especially as the Treasury and the SBA administer the program.
Who Will be Eligible for the Second Round of PPP Funding?
According to the draft framework, businesses under 300 people who can demonstrate a 50% reduction in revenue over a certain period of time will be eligible. It is also proposed that there be a working capital program for small businesses that may not qualify for a second PPP fund.
The framework also talks about a different allocation of funds usage for loan forgiveness. For example, businesses may be able to use their PPP loan for supplier costs, operating expenses, and damage caused by rioting.
Lastly, the proposed legislation also brings up original PPP loan forgiveness, and suggests it will make it even easier to get original loans forgiven.