SBA Is Launching A Third Round Of PPP Loans To Get Cash To Small Businesses | ZeroHedge
By Francesco Abbruzzino
At about the same time that even the Democrats are starting to wrap their heads around how unsustainable the lockdowns have been (genius New York governor Cuomo finally capitulated publicly on Twitter just hours ago), small businesses are getting a little more relief.
The Small Business Association announced on Friday that it would be launching a third round of the Paycheck Protection Program (PPP) this week. The new wave of payments will start with community banks and then eventually transition through larger lenders. The SBA seeks to “address criticism from lawmakers that minority and women-owned businesses did not get enough money during the first two PPP rounds last year compared with bigger businesses,” according to Reuters.
The program will continue to offer funds for things like payroll and rent for small business owners. So far, the PPP has distributed $525 billion.
The new wave of payments were authorized by congress last month as part of a new stimulus package. Companies that took money during the first two rounds now have to show a 25% decrease to their revenues. The protections are being put in place to try and combat fraud, despite the fact that they add a new step to the process. Dan O’Malley, CEO of Numerated told Reuters: “It’s all great but it’s really complicated.”