PPP ends this weekend. A new program could benefit certain industries and owners — including allowing some to apply for a second government loan.

Capitol Hill in Washington, DC.

The deadline to apply for the Paycheck Protection Program is August 8.
So far, the Small Business Administration approved more than 4.9 million loans for a total of more than $521 billion.
Experts predict the PPP will expire on its deadline, and that lawmakers will pass new federal relief aimed at women- and POC-owned businesses.
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The deadline to apply for the Paycheck Protection Program is Saturday, August 8, and many small business owners are wondering what, if anything, will replace the forgivable loan program.

The PPP is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act and was originally set to expire on June 30. However, on July 4, President Trump signed legislation that extended the deadline by five weeks. The Small Business Administration approved more than 4.9 million loans for a total of more than $521 billion, according to SBA numbers from July. At the time, the SBA said it had about $132 billion remaining in the fund.

Business Insider asked three experts what will happen to the PPP after its deadline passes. They believe the PPP won't get a second extension and that another initiative, specifically catered to smaller and minority-owned companies, is likely coming soon.

The PPP is likely going to expire on Saturday, August 8

There's currently no plan to extend the PPP deadline, said Henrietta Treyz, the director of economic policy at healthcare policy investment research firm Veda Partners.

Jim Tobin, executive vice president of government affairs and chief lobbyist at the trade association National Association of Home Builders, believes the PPP will lapse because lawmakers are focused on other timely issues, like unemployment benefits.

However, lawmakers previously extended the PPP deadline and may do it again at the last minute, adds Treyz. With $60 to $90 billion left in PPP pot, she estimates, "no one wants to stop that from being doled out because of some artificial deadline," she said.

There may be more money coming for specific businesses

Lawmakers are likely to issue more money for struggling businesses, but a smaller subset of companies will be eligible to receive those funds, said Richard Prisinzano, the director of policy analysis at the economic research and analysis initiative Penn Wharton Budget Mode. For example, minority- or women-owned businesses, companies with fewer employees than designated in the first two rounds of PPP, and specific industries that are suffering due to the economic toll of the pandemic.

"They're going to try to target those groups to make sure there aren't any specific sectors of the small business community that are left behind," Tobin said.

Additionally, there's a strong sense in the Democratic caucus that airlines and restaurants need to be prioritized, said Treyz. Their reasoning is that restaurants employ a disproportionate amount of women, minorities, and young people and they want to keep those people working, she adds. Meanwhile, airline workers such as pilots and flight attendants need to maintain their certifications. If these employees are fired or furloughed, they will lose their certification and it will be harder to bring them back online, she said.

New legislation looks likely

On July 27, US Senator Marco Rubio (R-FL) and Senator Susan Collins (R-ME) introduced the Continuing Small Business Recovery and Paycheck Protection Program Act. The federal aid package aims to ensure that small businesses have the resources to weather the pandemic.

If approved, the act would allow "the most severely affected" small businesses to receive a second PPP loan and would create a new long-term recovery loan program that would provide capital to industries hardest hit by the crisis, according to a press release from Rubio. The $60 billion program would help minority-owned and seasonal companies along with businesses in underserved communities.

Treyz and Tobin predict it will get the votes. "I don't see a lot of pushback to that," Treyz said. "There is no major opposition to the framework."

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