New PPP Loans Should Include Revenue Test, Mnuchin Says

The more targeted PPP relief "for smaller companies and those that have been especially hard hit by the pandemic" would include restaurants, hotels and other travel and hospitality businesses, Mnuchin said.

"What about minority businesses?" Rep. Nydia Velazquez, D-N.Y., chairwoman of the committee asked Mnuchin.

"I agree with you, there should be a set-aside for small minority businesses," Mnuchin replied.

Also on Friday, the Federal Reserve Board modified the Main Street Lending Program to provide greater access to credit for nonprofit organizations such as educational institutions, hospitals and social service organizations.

The Fed approved two new loan options to provide support to a broad set of nonprofit organizations that were in sound financial condition prior to the pandemic.

"Nonprofits provide vital services across the country and employ millions of Americans," said Federal Reserve Chair Jerome Powell, in a statement. "We have listened carefully and adapted our approach so that we can best support them in carrying out their vital mission during this extraordinary time."

— Related on ThinkAdvisor:

• Fed Is Setting the Stage for a Major Policy Change
• Does New PPP Loan Guidance Give Borrowers a License to Steal?
• Navigating the Twists in PPP's Loan Forgiveness Rules