Treasury Secretary Steven Mnuchin hinted Friday at potential changes to a forgivable loan program that’s been a lifeline for small businesses hurt by COVID-19, Roll Call reported. Mnuchin told the House Small Business Committee that the next round of coronavirus relief legislation, which the Senate is expected to begin negotiating in earnest next week, should amend the Paycheck Protection Program (PPP) to allow the hardest hit companies to apply for a second loan. There is now around $130 billion available for new loans. Senate Small Business and Entrepreneurship Chairman Marco Rubio of Florida has said that he wants the next coronavirus relief package to repurpose that money for another round of PPP loans. Businesses that have seen larger revenue declines would be allowed to apply for a larger forgivable loan, which could be used more broadly than current PPP loans. Mnuchin reiterated his support for those tweaks. “Next phase relief should extend the PPP, but on a more targeted basis for smaller companies, and those that are especially hard hit, such as restaurants, hotels and other travel and hospitality businesses,” he said, later emphasizing that eligibility should cover all businesses that have had “significant revenue declines,” rather than targeting specific industries. Mnuchin also expressed support for ideas contained in a bill from Democratic Sen. Michael Bennet of Colorado and Republican Sen. Todd Young of Indiana that would take the PPP and allow businesses that have seen their revenues decline by at least a quarter apply for 6-months’ worth of fixed operating costs and payroll.
