Friday’s Hearing Shows What May Be In Store For Future Rounds Of PPP Loans

Friday’s Hearing Shows What May Be In Store For Future Rounds Of PPP Loans

Getty





The Probable Next Round of PPP Loans Based on Necessity, Minority Outreach, and Exactly What Was Said About Automatic Forgiveness for Loans Under $150,000.  



On July 17, 2020, the House of Representative's Committee on Small Business held a hearing with Steven Mnuchin, the United States Secretary of the Treasury, and Jovita Carranza, Administrator of the Small Business Administration ("SBA“), to discuss the Paycheck Protection Program ("PPP“).  Members of both parties praised the work done by these individuals with regard to the PPP program, but also voiced concerns about important issues as discussed below.   



There was strong agreement that there should be a future round of PPP loans for businesses.  Secretary Mnuchin suggested that Congress "would reauthorize the program to allow for a second check, and a second payment to the businesses that are most hard hit.“  He followed this by discussing a revenue test to ensure that the businesses that receive future loans must actually need them.   



My friend and PPP expert Kevin Cameron CPA noted that Mnuchin's "positive comments are welcomed, but he fails to mention that much of the positive results are simply a direct result of the unprecedented injection of $517 billion of PPP loan