President Trump has signed a five-week extension of the Paycheck Protection Program (PPP), after unanimous agreement by the U.S. Senate and House of Representatives, in an effort to continue providing relief for small businesses hit hard by the pandemic. Applications officially closed for the program on June 30 when the Senate voted for a last-minute extension.
This extension gives small businesses until Aug. 8 to apply for a share of the approximately $129 billion in remaining PPP funding through the Small Business Administration (SBA). Thanks to the PPP Flexibility Act passed on June 5, recipients have 24 weeks to use loan funds for payroll and other essential expenses like rent/mortgage and utilities. The Flexibility Act also lowered the threshold for payroll expenses to 60% to achieve full forgiveness with a few safe harbor considerations. Over 4.9 million loans have been approved by the SBA so far, worth more than $520 billion.
Contact us for assistance in compiling information for your PPP forgiveness application to present to your lender.
*Please note that information and guidance on the PPP loan program is changing on a daily basis. The information provided in this article is current as of 7/5/20. It is intended for general informational purposes only. Consult with your financial advisor about your specific situation.