Congress Adopts PPP Application Extension
The United States Congress has adopted legislation to extend access to the Paycheck Protection Program (“PPP”) loan program through August 8, 2020.
Prior legislation set the deadline for applications at June 30, but, given that over $130 billion of funds remained available, the application was extended to August 8. The latter date gives Congress additional time to determine appropriate use of the remaining funds.
PPP loans provide small businesses with funds for payroll and certain other operating expenses and can be forgiven if conditions are satisfied.
Additional flexibility for borrowers was adopted in June, which may make PPP funding more attractive to some businesses.
Congress is expected to adopt additional legislation in response to the COVID-19 pandemic later in the summer. Making a second PPP loan available to qualifying borrowers is one possibility that is being discussed, but until such a change is adopted borrowers are limited to only one loan.