Is PPP new and improved in the new Senate stimulus package? Let’s find out…


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After several days of recording videos, and a few too many comments about my mustache, I’m going to give my index fingers some exercise today for this blog post.

Pour yourself a double ☕ with an extra shot of 5-Hour Energy, because we’re talking PPP and Senate legislation.🥱

On Monday, the Senate revealed its massive stimulus package — it’s ok to type that, right? — part of which includes the “Continuing Small Business Recovery and Paycheck Protection Program Act.” Senators Rubio (FL-R) and Collins (ME-R) are the co-sponsors.

In this press release from Senator Rubio, he touted the legislation as ensuring that “small businesses, including minority-owned firms and those in underserved communities, have the necessary resources to weather the COVID-19 pandemic.” How so? Well, the small businesses that COVID-19 has hit hard can apply to receive a second PPP loan. Additionally, a nearly $60 billion long-term recovery loan program would target low-income communities, minority-owned, and seasonal businesses.

A section by section is available here and a one-pager here.

But, if you don’t have the attention span for — oh, look! Funny wrestling memes — either one, I’ll break it down (read: cut and paste) from Senator Rubio’s press release:

The Continuing Small Business Recovery and Paycheck Protection Program Act would:

  • Long-term Recovery Sector Loans: Create a guaranteed long-term, low-interest working capital product by improving the terms of 7(a) loans for seasonal businesses and businesses located in low-income communities. The loans would equal 2x the borrowers’ annual revenues, up to $10 million, with a maturity of up to 20 years at an interest rate that is fixed at one percent to the borrower. The bill would allow businesses with 500 employees or fewer and have seen their revenues decline by 50 percent or more in the first or second quarter this year compared to the same quarter last year.
  • PPP Second Draw Loans: Provide funds to allow the hardest-hit small employers – those that have seen their revenues decline by 50 percent or more in the first or second quarter this year compared to the same quarter last year – to receive a second PPP loan. The bill would limit these second forgivable loans to entities with 300 or fewer employees and create an additional set aside of funds for businesses with 10 or fewer employees to ensure equitable access to forgivable loans. The bill includes a $10 billion set aside for community lenders to access second draw funds.
  • PPP Programmatic Improvements: Allow businesses to utilize forgivable PPP funds for personal protective equipment for workers, adaptive investments needed for businesses to operate safely amid the COVID-19 pandemic, and additional expenses. It would also simplify the forgiveness application and documentation requirements for smaller loans under $150,000. Additionally, it would further expand eligibility to certain 501(c)(6) organizations with 300 employees or fewer as well as favorable loan calculations for farmers and ranchers.
  • Small Business Growth and Domestic Production Investment Facility: Provides for the provision of $10 billion in long-term debt with equity features to registered SBA Small Business Investment Companies (SBICs) that invest in small businesses with significant revenue losses from COVID-19, manufacturing startups in the domestic supply chain, and in low-income communities. Establishes return participation for the SBA in order to recoup the one-time cost of the investment.

The consensus from the two articles I read about this legislation is that it’s not going to pass as is. (Way to bury the lede, Eric!)

But, I do expect there to be plenty of negotiating over the next few days (weeks?) on Capitol Hill over the substance of this legislation — possibly with this and this.

And I promise-ish to keep you updated.


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