Paycheck Protection Program loans were created to help small businesses pay their employees during closures and other business related expenses.
Congress pumped more than 500 billion dollars into the PPP, with a deadline of June 30 for people to apply for the funds. The House recently voted to extend that deadline to August 8th. Now, senators including Kevin Cramer have introduced an act that could forgive PPP loans.
“Maybe just setting a threshold and if you are less than a certain dollar amount, it could just be forgiven. So we are waiting to see what happens with that stuff now. It’s a kind of hurry up and wait type deal,” said Perry Olson, First International Bank and Trust.
If the act passes..loans of 150 thousand dollars or less could be forgiven. But borrowers would have to maintain certain loan requirements. At least 60 percent of the money must be used toward payroll, and keeping current employees staffed. Borrowers would also have to submit a form to the lender..stating that they have followed the requirements of the loan. One business owner we spoke to says her loan process has been smooth and she hopes this act passes to help small business owners.
“The way they are restructuring it, helped a lot. Especially at Higher Ground, because when we got out loan and the 8 week period after that, we didn’t have many employees because we still weren’t open yet. So it helped to be able to move that forward,” said Denise Lindbo.
According to Senator Cramer’s website, out of 4.9 million loans..3.7 of them were for $150,000 or less.