Senate Pushes to Extend PPP Loan Application Deadline
Hours before the Paycheck Protection Program (PPP) was scheduled to close, the U.S. Senate passed a five-week extension of the program, making Aug. 8 the new deadline to apply for a forgivable loan. This effort provides more time for small businesses to apply for the estimated $130 million in PPP funding that remains unused.
With this bill, the Small Business Administration (SBA), which oversees the PPP with the Treasury Department, may continue approving loans to businesses that apply. However, this extension still needs to be passed by the House of Representatives as well as signed by President Trump to keep the funding available. At the end of this week, both chambers of Congress are expected to adjourn for a two-week recess.
Developed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the PPP has been instrumental in providing relief to small businesses financially impacted by COVID-19, offering forgivable loans of up to $10 million per borrower to cover expenses such payroll, mortgage interest, rent and utilities. To date, more than $500 billion in loans has been distributed to nearly 5 million businesses.
As COVID-19 cases continue to spike across the nation, several proposals are emerging for a modified loan program or a different initiative to provide more financial assistance to small businesses.
Doeren Mayhew’s business advisors continue to monitor news related to the PPP. For more PPP news, visit our dedicated Coronavirus Resource Center.
If you have any questions or are in need of assistance with your PPP loan, contact us today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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