On Tuesday, June 30, just hours before the application window for the Paycheck Protection Program (PPP) was scheduled to close, the U.S. Senate unanimously passed a five-week extension. The House of Representatives followed suit, and the act was signed into law by the President on July 4, 2020.
The intention behind this extension is to offer small businesses more time to submit an application for funds from the estimated $134 billion that remains in PPP funding. Launched in early April, the PPP provides forgivable loans for small businesses—and other entities that qualify—as a means to cover payroll and other specified costs during the COVID-19 pandemic period.
Originally, the U.S. Small Business Administration (SBA), which oversees the program, had planned on closing loan applications at midnight on June 30. The extension allows applications to be filed until August 8.
For information on the PPP loan program and the application process, you can learn more here. If you have any questions about your current PPP loan, or are interested in applying for the Paycheck Protection Program, reach out to a CRI advisor.