New Senate PPP Bill Introduced Allowing a Second Loan

Senators Ben Cardin (D-Md.), Chris Coons (Del.) and Jeanne Shaheen (N.H.) introduced The Prioritized Paycheck Protection Program (P4) Act earlier this week that would allow businesses with less than 100 employees who have suffered as a result of COVID-19 to take out a second PPP (or P4) loan. Qualifying borrowers must have 100 employees or less or be self-employed and must also be able to demonstrate a loss of more than 50% in gross receipts for a quarter in 2020 compared to a quarter in 2019. They must have exhausted (or be on pace to exhaust) their first PPP loan and certify they need the funding to support ongoing operations for covered expenses (payroll and rent/utilities/mortgage). Publicly traded companies would not be eligible, and a P4 loan must not exceed $2 million. The Small Business Administration (SBA) would provide priority to companies with ten employees or less. If passed, the deadline to apply for these P4 loans would be October 1, 2020, although the SBA would be empowered to extend that deadline. NPMA will continue to monitor this and other COVID-19 bills that could impact the industry. For questions on PPP loans or Congress, contact VP of Public Policy Ashley Amidon at aamidon@pestworld.org.