A new bill introduced on June 18th called the Prioritized Paycheck Protection Program (P4) Act, would allow small businesses with less than 100 employees to apply for a second PPP loan.
They would have to have used, or be on pace to exhaust, their first PPP loan and able to show a 50% loss in revenue due to the coronavirus pandemic. They must also be able to show that they need the funds for payroll and eligible non-payroll costs.
The bill is focused on struggling small businesses as evidenced by the specification that publicly traded companies are not eligible and hospitality and lodging businesses with multiple locations are limited to a $2 million loan amount.
“The economic fallout from COVID-19 has been an existential threat to our nation’s small businesses and Congress cannot letup in its efforts to get them get through this crisis,” said Shaheen in a statement.
”This legislation prioritizes smaller businesses, particularly those in the restaurant and hospitality industries, which have been hit especially hard in recent months.”