ST. LOUIS — At more than 5,000 pages, the details of the new federal stimulus legislation and Paycheck Protection Program (PPP) are far from clear or understood, but St. Louis bankers took a stab at what it may mean for businesses.
Making the task more difficult is the fact that the initial round of PPP lending, which doled out $522 billion to 5.2 million businesses, was followed by rules changes, sometimes daily. The new $900 billion stimulus legislation includes $284 billion for the PPP program, or PPP2 as some are calling it.
"In true government fashion, they say one thing when they introduce the program to get people to use it, then backtrack and start questioning those that took the money," said Jim Wagner, CEO of Parkside Financial Bank & Trust. "If I were a business seeking help in the form of PPP, I’d want really clear rules this time so I don’t have to defend myself when the politicians change course after the fact."
Scott Goodman, president of Enterprise Bank & Trust, said more clarity is needed, "but at this point it, looks like this round includes revised features that will be helpful to some of the most stressed businesses by tying loan requirements to revenue declines."
Goodman called set asides for theaters and entertainment venues "well directed." Rick Bagy, president of Central Bank of St. Louis, agreed, but lamented that the legislation doesn't contain big relief for restaurants and hotels.
Also well directed are set asides for technology and human resources, allowing businesses to continue spending in areas most critical to survival, Goodman said.
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