Legislation Extends PPP Application Deadline to August 8July 07, 2020
President Trump signed legislation extending the deadline for businesses to apply for the Paycheck Protection Program from June 30th to August 8th.
Over the weekend, President Trump signed the “PPP Extension Act”, hours before the window to submit applications for the PPP was set to close. Since the PPP was introduced back in March, lawmakers have modified the program twice – once adding money, and more recently allowing for more flexible use of the funding. The loans are intended to help businesses keep employees on the payroll, can range up to $10 million per loan, and can be forgiven if certain provisions are met.
More than 4.8 million businesses have already applied for PPP loans but additional guidance on eligibility continues to be released providing clarity for many borrowers who were unsure of their eligibility to participate. Additionally, this extension assists businesses previously unable to find lenders who are still accepting new applications to borrow.
What Does This Mean for Businesses?
With the President’s approval, businesses will now have until August 8th to apply for assistance. The five week extension provides a source of funding for struggling small businesses while Congress works on a more targeted funding program. Secretary Mnuchin has expressed that any additional relief be targeted to businesses that are especially hard-hit, such as hotels and restaurants. Another proposal would allow businesses with fewer than 100 employees to take out a second PPP loan from the remaining funds.
So far, the program has distributed about $520 billion in loans to almost 5 million business, but over $130 billion still remains in the $660 billion fund. This extension has granted Congress time to determine how to allocate the remaining money and decide the next steps for federal aid to small businesses.
With legislative talks of another bill being passed later this month, our team is monitoring these closely and will keep you updated. We’re always here to help. Contact us. Our Coronavirus Resource Center has the most recent updates—be sure check it out.
Questions about the application process? Check out PPP: Your Loan Forgiveness Questions Answered.