In an eleventh-hour attempt to salvage the $130 billion of funds left in the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) and put them to best use, the Senate unanimously voted ahead of the House on Tuesday, June 30th, to extend the deadline for PPP applications which was set to expire at midnight. The House followed suit on July 1st, also voting unanimously to grant a five-week extension. The extension allows for additional PPP loan applications from small businesses faced with the downsizing of personnel or potential closures to be accepted through August 8th.
To date, the SBA has granted $520 billion in PPP loans to over 4.8 million affected businesses. A small business is eligible to receive a PPP loan only if it employs 500 individuals or less.
In order for the extension to pass the Senate, all 100 senators were required to vote in favor of the bill. Recognizing that with the incidence of coronavirus still on the rise in many U.S. states, continuing relief by way of PPP loans would be needed to help keep small businesses afloat, all senators voted in favor of the extension.
President Trump signed a bill on July 4, 2020, which re-opened the application acceptance process that had been temporarily halted as of June 30th. With the President’s approval, the PPP will get its expected extension through August 8, 2020.
Even as the extension of the PPP loan program is well underway to getting a temporary reprieve, the Senate has begun a bipartisan, next-round wave of negotiations in an attempt to quickly put into place new stimulus legislation that will help small businesses in industries most impacted by the pandemic, such as hospitality companies, make use of remaining funds. The new stimulus legislation will take center stage after legislators return from their two-week, post-July 4th recess.
For questions about PPP loans or the extension of applications, please contact your Untracht Early advisor.