Paycheck Protection Program (PPP) Application Period Extended to August 8, Funds Remain Available
On July 4, 2020, President Trump signed into law S.4116, a bill which (1) reauthorizes lending under the Paycheck Protection Program (PPP) through August 8, 2020; and (2) separates the authorized limits for commitments under the PPP from other Small Business Administration loan programs.
The PPP allows businesses to receive government loans to pay for payroll, rent, and other expenses. The loans can be forgiven if at least 60% of the borrowed funds are used for payroll. The original deadline for small businesses to apply for funding was June 30th. However, with $130 billion in funding still available, both the House and the Senate unanimously approved the extension.
House Committee on Small Business Ranking Member Steve Chabot (R-OH) issued the following statement regarding the extension: “Passage of this bill is welcome news, especially as many small businesses continue to face an uphill climb on the road to economic recovery. This legislation will give more small businesses the chance to access the Paycheck Protection Program— a program that has already helped millions across the country... While our work is not done, I am glad Congress has yet again come together in a bipartisan, bicameral manner to support America’s small businesses.”