Will There Be a New PPP 3 Loan Program from the SBA? | Third Draw PPP Loan?
Many business owners are wondering if there is going to be a new third draw PPP 3 loan program from the SBA. In this video, we will discuss why there may be a new PPP loan program and why there may not be a new SBA PPP 3 loan.
This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos.
Freedomtax Accounting and Multiservices Inc. are providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.
Will there be a third PPP loan program in 2021? That’s the question that we’re going to answer in this video. Hello from Freedom Tax Accounting, an accounting firm where we have been providing quality tax and accounting services now for over 20 years. If you are new to this channel, we provide strategies for small business owners so they can achieve their financial goals. We are recording this video on July 22nd 2021 and we always emphasize the date of the recording on any video related to the PPP program because this program has been constantly changing. So, there may be things that we discussed in this video that can change as soon as tomorrow. So, that’s the importance of subscribing to our channel that way you are always up to date with the most current and correct information regarding the SBA loans.
Now one of the most common questions we get here at Freedom Tax, “Is there going to be another PPP program available now in 2021 or in the future the answer is maybe we think that there may be some situations that yes there may be a new PPP, but most likely there won’t be another PPP and we will discuss both scenarios. So, first, let’s discuss why we think that there is not going to be a third PPP program and it’s because right now the economy has been suffering from high inflation. Right now the inflation is at 5.4% and some analysts at least that’s what was that’s the official number from the government, but some economists and industry professionals they’re saying that really the inflation is up to 7 and maybe 9% and that is super high number inflation usually goes up 1.5 to 2 a year so having inflation all the way up to 5.4 is dangerous because that can really harm the economy down the road.
Now the government needs to be careful because they’re in a top spot because yes the economy is rebounding. The economy is becoming better but is not becoming better everywhere in the united states but they also so there are still a lot of businesses and small business owners that need financial help. But the government needs to be careful that they don’t overstimulate the economy, because if they do that then that can make the inflation problem even worse, so maybe you have already seen that items prices of gas food the prices of everything has been going up and that’s because of inflation okay. So, right now the government is in a tight spot where they know small business owners are still have not recovered completely economically and they do need financial help but they also know that they cannot overstimulate the economy and because if they do then that will make the inflation problem even worse and prices are going to go up even higher and that is bad for the economy right now so that’s why we think and also there is a lot of talk in Congress about a new stimulus bill and none that we have seen include another PPP program so that’s why we think there will not be another a new PPP program in the future now one scenario that may play out that a PPP program may be available in the future is that realistically this coronavirus is new we don’t know what’s going to happen in a couple of months. Right now, the government is having a hard time controlling the delta variant of the coronavirus, so if things become worse incur in terms of the coronavirus and the government can’t control the virus and things shutdowns have to come again all that stuff people were needing to wear masks maybe another shutdown that may trigger the government to maybe yes have to approve another PPP program but we will need to see and wait. But right now, most likely if things continue the way they’re going we do not see another PPP program being approved at least in 2021 we never know what’s going to happen in the future. But because of the problem that the government is having with high inflation, I think they are not going to do more stimulus because they have to make sure that they don’t overstimulate the economy because that its kind of doesn’t make sense that giving out more help affects the economy yes because it does raise it. It is a factor that can increase inflation in a very bad way okay.
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