Last updated on July 29, 2021
Belleair Paycheck Protection Program
Republicans unveiled the HEALS Act Monday, while Democrats are backing the HEROES Act passed by the House in May. While disagreeing only hurts many families that need some relief! Democrats want a second round of $1,200 stimulus checks, and Republicans agreed Monday as they unveiled their opening offer for another relief package.
Meanwhile, small businesses have until August 8 to submit an application for possibly excusable loans via the Paycheck Protection Program (PPP), which was extended from its original June 30 deadline.
While a second PPP is under consideration in the Continuing Small Business Recovery and Paycheck Protection Program Act, part of the Senate’s HEALS Act is more restrictive, and the available amounts are smaller. The law’s adoption is far from certain, but it does at least set the minimum provisions around the negotiations in Congress for a second PPP.
Businesses with 500 or fewer employees could apply for loans to cover eight weeks of employee payroll, with a cap of $10 million and $100,000 per employee. The loans would be forgivable if the companies spent the funding on payroll, rent, or other approved expenses.
The PPP began accepting applications on April 3, even though loans would be forgivable. Rather than covering all businesses that qualified. Much of the funding went first to the customers the banks already knew and trusted.
Although helpful to some small businesses. PPP loan data shows great deal of abuse
In many cases, businesses that qualified were left out. Even the SBA who back the loans acknowledged that established businesses “knew how to work the system” to get the loans, but mom-and-pop merchants were always at a disadvantage. Because they didn’t have an accountant on speed dial, they weren’t computer savvy, lack the language skills to navigate the banking system. Many closed their door!
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