Mnuchin Open to Working With Congress on Changing Terms for Small Business Loans
U.S. Treasury Secretary Steven Mnuchin is admitting that he is considering changes to the restrictions on small business loans under the Treasury’s and Small Business Administration’s Paycheck Protection Program (PPP)…
U.S. Treasury Secretary Steven Mnuchin is admitting that he is considering changes to the restrictions on small business loans under the Treasury’s and Small Business Administration’s Paycheck Protection Program (PPP).
During an interview with CNBC on Monday, Mnuchin confirmed he is now open to the possibility of changes to loan terms amid growing concerns from small business owners and lawmakers, collectively.
The current terms offer full loan forgiveness to businesses that use 75% of loan proceeds to cover eight weeks of paycheck payments to employees while committing to keeping workers on the payroll.
Since only the remaining 25% can be used for overhead expenses, many small business owners have expressed concerns about the lack of flexibility they have in using the funds.
Mnuchin reiterated that the restrictions are based on what Congress designed. However, he would be open to supporting changes if Congress sees fit to do so.
“The way Congress designed this was eight weeks of payroll and 25 percent of overhead. If Congress wants to change that rule. I’m happy to work with Congress if there’s bipartisan support to do that,” Mnuchin said.
He continued, “But the 75% test was just a clarity on a test that was clear in the way Congress designed this program. But again, like anything else, if we need to make technical fixes as we see different issues, I think one of the things we’re particularly sympathetic to is the restaurants.”