A new PPP loan application “should take 20 minutes to complete”
WISCONSIN – Small businesses in Wisconsin fearful of being trapped by all the paperwork to complete the paycheck protection program loan forgiveness application just received help on Wednesday.
I spoke with Treasury Secretary Steven Mnuchin about the new “EZ” version.
“I think we put it there, it should take 20 minutes to complete,” Secretary Mnuchin said. like two hours. “
Our partners at the Milwaukee Business Journal report that the new version of the forgiveness request asks borrowers to show that at least 60% of their P3 funds were spent on personnel costs, rather than the original 75% requirement.
The simplified version comes after US Senator Tammy Baldwin and other Senate Democrats sent a letter to Secretary Mnuchin expressing concerns about “the complexity and high cost of the P3 loan forgiveness application process.”
“We expect that a majority of companies will be able to do this in a very simple way,” Mnuchin said.
Senator Baldwin told TMJ4 she was “happy” with a more streamlined forgiveness form, but “because of this unnecessarily complicated forgiveness process, PPP funds did not go to the hardest hit companies in Wisconsin. , like restaurants and taverns “.
Secretary Mnuchin was asked if another stimulus check would be needed this year?
“Well, there is definitely a need for a CARES Four,” Sec said. Mnuchin. “Whether that includes a stimulus check, economic impact payments – we’re going to look at that very carefully, we haven’t decided yet.”
He says any additional money would go to help businesses that will take longer to reopen.
Mnuchin credits the CARES (Coronavirus Aid, Relief, and Economic Security) law with helping to increase retail sales by nearly 18% in May.
“In CARES, we have invested around $ 3 trillion that has been authorized,” Mnuchin said. “We have a little over half of that in the economy and we are working to inject the rest.”
In May, the economy created 2.5 million jobs – as more people returned to work, but millions remain marginalized by the virus. The unemployment rate is 13.3%. Higher for Hispanic men -17.6% and African-American men – 16.8%.
“The unemployment rate is still too high,” Mnuchin said. I expect that we will continue to open up the economy – we are going to see a lot of these jobs coming back and we are going to continue to work with Congress to stimulate that. “
House Democrats have already passed another stimulus package called the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES).
This is an additional $ 3 trillion and includes nearly $ 1 trillion in aid to state and local governments, extending the addition of $ 600 per week for unemployment benefits until January 2021 .
Senate Republicans did not take the bill back from the House.