Bill Overview
Title: Low-Revenue Recipient Paycheck Protection Program Relief Act of 2022
Description: Low-Revenue Recipient Paycheck Protection Program Relief Act of 202 This bill provides additional forgiveness and flexibilities to certain low-revenue recipients of Paycheck Protection Program loans.
Sponsors: Sen. Gillibrand, Kirsten E. [D-NY]
Target Audience
Population: Low-revenue small business owners and employees
Estimated Size: 25000000
- The Paycheck Protection Program (PPP) was primarily aimed at small businesses to provide financial support during the COVID-19 pandemic.
- Low-revenue recipients within this context likely refer to businesses or organizations with lower-than-average revenue streams.
- Given that the PPP was part of US federal legislation, it's primarily applicable to businesses operating within the United States.
- The focus on low-revenue recipients suggests that smaller organizations or those with minimal financial turnover, potentially struggling more, will benefit from this relief act.
Reasoning
- Given the budget and target population, not every small business or employee will see significant impact immediately due to limited resources compared to the demand.
- The program is likely to focus on the most vulnerable businesses which might not have high accessibility to financial reserves or alternative funding.
- We need to consider a mix of individuals directly and indirectly impacted by the policy—some may benefit more, others less, and some not at all.
- A diversity of geographical areas should be included, reflecting different economic environments across the US.
- Consider different types of small businesses—some might have recovered better post-pandemic, others still struggling significantly.
- The program impacts should diminish over time unless renewed or expanded, as the current budget supports is finite and specific to low-revenue businesses.
Simulated Interviews
Owner of a small auto repair shop (Detroit, MI)
Age: 52 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- The previous PPP loans helped us survive during the pandemic, but business hasn't fully recovered.
- Additional relief could help maintain the current staff and maybe even expand a bit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 3 |
| Year 10 | 4 | 3 |
| Year 20 | 3 | 2 |
Freelance graphic designer (Austin, TX)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 14/20
Statement of Opinion:
- I didn't qualify for much from previous programs, and I'm wary this one might not help either.
- If it helps struggling clients of mine, that'd be beneficial to my business in the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 3 | 2 |
Chef and small restaurant owner (Montpelier, VT)
Age: 33 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- We've been treading water since early 2020.
- Any relief would allow us to avoid more layoffs, which are painful decisions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 4 | 2 |
| Year 20 | 3 | 2 |
Boutique owner (Atlanta, GA)
Age: 40 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- Every bit helps, but I'm skeptical whether we’ll qualify this time as the competition is tough.
- The support could be our lifeline to get back on our feet.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 6 | 3 |
| Year 3 | 5 | 3 |
| Year 5 | 4 | 2 |
| Year 10 | 4 | 2 |
| Year 20 | 2 | 1 |
Software developer in start-up (Seattle, WA)
Age: 29 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- It's not entirely clear if or how this affects us directly.
- If our clients benefit from this, it may indirectly help us too.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Event planner (New Orleans, LA)
Age: 50 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I've applied for everything available—it all helps.
- Without support, we barely make ends meet. This relief will be crucial if granted.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 5 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 4 | 2 |
| Year 20 | 3 | 1 |
Owner of a small farm (Rural Kentucky)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- Rural areas often miss out on these programs.
- I've applied before but never received any support—skeptical but hopeful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 4 |
| Year 5 | 4 | 3 |
| Year 10 | 3 | 2 |
| Year 20 | 2 | 1 |
Yoga studio owner (San Francisco, CA)
Age: 36 | Gender: female
Wellbeing Before Policy: 3
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- We were hit so hard; if this helps with rent, it would be amazing.
- I know lots of us in our community are in a similar situation. We need that support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 6 | 3 |
| Year 3 | 5 | 3 |
| Year 5 | 5 | 2 |
| Year 10 | 3 | 2 |
| Year 20 | 2 | 1 |
Craft beer brewer (Boise, ID)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- Things are looking up, but extra relief could help stabilize cash flow.
- My employees count on continuity, and that should be our main goal.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Vintage clothing store owner (Chicago, IL)
Age: 39 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The thought of more support reassures me, especially considering slow recovery.
- We need direct aid to pay staff without worrying each month.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 5 | 3 |
| Year 5 | 4 | 2 |
| Year 10 | 4 | 2 |
| Year 20 | 3 | 2 |
Cost Estimates
Year 1: $5000000000 (Low: $4000000000, High: $6000000000)
Year 2: $4500000000 (Low: $3500000000, High: $5500000000)
Year 3: $4000000000 (Low: $3000000000, High: $5000000000)
Year 5: $3500000000 (Low: $2500000000, High: $4500000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- High variability in the financial stability of target businesses may complicate precise cost estimations.
- Economic conditions could change the number of businesses seeking PPP relief, influencing overall costs.
- Potential implementation challenges include processing additional forgiveness claims efficiently.