Senator John Hoeven released the following statement yesterday after the Continuing Paycheck Protection Program (PPP) Act, legislation to provide $257.6 billion in support for the hardest-hit small businesses struggling to recover from the impacts of the COVID-19 pandemic, was blocked from advancing.
“COVID-19 continues to challenge small businesses throughout North Dakota and the country. The Continuing PPP Act would provide vital assistance for the small businesses that continue to struggle with reduced revenue, and have been hardest hit during the pandemic,” said Hoeven. “Support for small businesses should be an area where there is broad bipartisan agreement and this legislation should not have been blocked from consideration. We need to approve this legislation and provide this much-needed additional support for our small businesses and their employees.”
The Continuing Paycheck Protection Program Act builds upon the original PPP, which was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and provides small businesses with 300 or fewer employees, and with a demonstrated need, the ability to receive a second PPP loan.
Additionally, the Continuing PPP Act would:
- Expand eligible PPP uses to cover certain worker protective, supplier and operational expenses.
- Target support to small businesses by including a $25 billion set-aside for entities with 10 or fewer employees and a $10 billion set-aside for loans made by community lenders.
- Forgive new and existing PPP loans under $150,000 upon completion of a simplified, one-page form.
- Streamline the forgiveness application for new and existing PPP loans between $150,000 and $2 million.
- Establish a specific PPP loan calculation for farmers and ranchers, allowing them to base their loan calculation on gross income, rather than net income.