Treasury Secretary Steven Mnuchin said Monday that he was open to easing the terms of the Small Business Administration’s Paycheck Protection Program. His comments came in response to growing concerns from business owners about stringent loan requirements, according to The Hill.
Under original program guidelines, PPP loan amounts can be entirely forgiven if the business uses the money for eight weeks of payroll plus 25% of all overhead costs during that period. Lawmakers and business owners increasingly have been calling on the Trump administration to give recipients more flexibility to hold onto their loans for longer durations and to direct more of the payments toward overhead costs. The SBA inspector general also warned in a Friday report that the administration’s 25% cap on overhead costs eligible for forgiveness did not align with the law that created the PPP, and could harm businesses the program intends to help.
Brad Granger, director of clinical operations with Lancaster Pollard, a division of ORIX Real Estate Capital, noted that skilled nursing facilities would benefit greatly if the cap is raised.
“Most SNFs facing financial peril because of the pandemic are not utilizing the funds for laid-off employees as much as for trying to retain and recruit staff,” Granger told McKnight’s. “Added flexibility to the overhead cap would significantly benefit a facility’s ability to cover supply costs, PPE and overhead.”