The bill would provide $190 billion in funds for companies seeking first-time or “Second Draw” PPP loans, with those second-time loans restricted tosmaller businesses that are not publicly traded, employ no more than 300, and have demonstrably suffered at least a 50 percent reduction in gross revenue. Of the $190 billion, $25 billion would be set aside for firms with 10 or fewer employees.
PPP 2.0 also addresses some of the forgivable loan stipulations that business owners have taken issue with. Borrowers would be able to choose their own 8-week period , rather than the previously fixed timeline, to spend the money. And while the 60/40 rule — meaning that 60 percent of the loan must go towards payroll expenses in order to qualify for forgiveness — still applies, the list for forgivable expenses has been expanded to include increased worker protection costs, e.g.
Congressional Democrats and Republicans will now have to negotiate over each side’s proposed legislation. In May, the Democrat-led House passed a $3 trillion stimulus package, called the “HEROES Act,” which included hazard pay for essential workers, more grants for small businesses, a greater percentage of PPP funds allocated to businesses with 10 or fewer employees, and similar PPP fixes as the HEALS Act.