The SBA has announced that due to budgetary constraints, new SBA borrowers between now and the end of September will get three months of payment relief (up to $9K a month) instead of six months. The economic relief act allocated $3.5 B for these payments, which the SBA believes will not cover six months of payments.
Limiting growth incentives is not sound economic policy, and in the next stimulus bill, Congress should add funds to this program. We must create stimulus and incentives for companies to invest, hire and grow. To put the $3.5 B budget into context, the second round of the PPP budget is $284 B, and $125.8 B has been used so far.
PPP is helping struggling businesses get over the hump of Covid, and this is critical. And also not enough. We must also help emerging, and growing businesses expand. As a reminder, on Friday, we will host a discussion with business owners and entrepreneurs who are experiencing rapid growth during the Pandemic. They are facing their own unique set of challenges and opportunities. Please join us.