This comes after the House unanimously voted to extend the deadline for small businesses to apply for the potentially forgivable loans a day after the original deadline for new applications had expired. Small businesses now have until Aug. 8 to apply for the loan.
Approximately $130 billion in allocated funding hadn't been used as of June 30. The $670 billion PPP was created by Congress in March to provide pandemic relief to small businesses with 500 or fewer employees. These loans are forgivable if the businesses use funds for payroll costs and expenses such as interest on mortgages, rent, and utilities.
They must also show that they have suffered a revenue loss of 50 percent or more due to the pandemic.
Similarly, Sen. Marco Rubio (R-Fla.), chairman of the Senate Small Business Committee, told reporters on June 30 that he's working on a more targeted approach for the $130 billion.
"I'm very concerned that a lot of minority businesses, particularly black-owned businesses already struggling to begin with, have access to capital."
Treasury Secretary Steven Mnuchin testified about repurposing the PPP program during a congressional hearing on June 30.
"I think that there appears to be bipartisan support in the Senate to repurpose the $130 billion for PPP, extending it to businesses that are most hard hit, that have a requirement that their revenues have dropped significantly—things like restaurants and hotels and others, where it is critical to get people back to work," Mnuchin said.