July 8, 2020
Payroll Protection Program Extension Act
The Payroll Protection Program (PPP) Extension Act was approved by Congress and subsequently signed into law by President Trump on June 5, 2020. Now, the Extension Act has been extended.
On July 4th, the President extended The PPP Extension Act deadline, which allows more businesses the opportunity to apply for PPP forgivable loans.
The CARES Act, signed into law on March 27, 2020, created PPP loans to aid businesses economically impacted by COVID-19 with a June 30, 2020 loan application closure date. As of July 3rd, there was approximately $131 billion (of the allotted $649 billion) in funding still available for PPP loans. This prompted Congress and the President to extend the PPP Extension Act. This new legislation provides two significant changes to the loan process.
1. Re-opening of PPP loan application link
Under the CARES Act, the Small Business Association (SBA) PPP loan program deadline officially stopped receiving new loan applications at midnight on June 30, 2020. The extension of the PPP Extension Act allowed the SBA’s Borrower Application Form Revised June 24, 2020 link to officially re-open and continue accepting applications.
2. Extending loan application deadline
Due to the extension of the PPP Flexibility Act, loan applications will be received until August 8, 2020. This extension reflects an additional 5 weeks for small businesses to apply for a forgivable PPP loan.
PPP Loan Recipients
SBA and US Treasury have announced PPP recipient names and their basic loan information for borrowers receiving $150,000 – $10M. Thus far, these loans account for roughly 75% of all approved PPP loans.
Borrowers receiving loans less than $150,000 were only identified by basic loan information including zip code, business type, name of lender, jobs supported, and non-profit information.
On July 6th, Treasury Secretary Steven Mnuchin said that PPP loans are “supporting more than 51 million jobs and over 80% of all small business employees…”. Mnuchin also stated “27% of the program’s reach [is] in low and moderate income communities which is in proportion to percentage of population in these areas”, with roughly $100,000 as the average loan amount.
Regulations and laws affecting you & your business continue to change. Need help confidently navigating in these unprecedented times?
To read other JPS COVID-related articles, click here.
Asheville Boone Marion
828-254-2374 828-262-0997 828-652-7044