The US is giving its glitchy small-business loan program another go. Nearly a third of the new $900 billion Covid-19 aid package will go toward extending the Paycheck Protection Program, or PPP, designed to save jobs at small companies through another $284 billion in forgivable loans.
The original version, which was part of CARES Act passed in March, has been criticized for awarding a big share of the funds to larger companies, and for its lack of transparency and uneven rollout. The new round seeks to address some of those problems—for example, by channeling some of the funds through community-based lenders that serve low-income borrowers.
Companies that already got a PPP loan will be eligible to apply under the extension. Here’s a look at key features of both versions:
The Small Business Administration, which will manage the program, has 10 days from the day the bill was signed to issue new rules to roll it out.