The Small Business Administration resumed accepting applications for the Paycheck Protection Program (PPP) on Monday, July 6th. This Act extends the time small businesses and self-employed individuals have to file an application for a PPP loan to August 8, 2020. This extension was passed with unanimous consent from both the House and Senate and signed into law on Saturday, July 4th.
More than 4.8 million small businesses have already applied for PPP loans designed and implemented to keep businesses afloat and keep paychecks in employees’ hands. However, applications for PPP expired with nearly $130 billion still available.
The CARES Act originally allocated $359 billion to help small businesses funds if they we impacted by the COVID-19 pandemic. As these funds ran out quickly, Congress passed and the President signed a second relief bill adding an addition $310 billion to the program. This was designed to meet the needs of applications already in the system as well as those businesses who still have the need but had not yet applied.
With the increase in COVID-19 outbreaks around the country, many states and municipalities have delayed or pulled back on reopening certain businesses. Fortunately, with the deadline extension, PPP loans could provide relief to small businesses struggling due to the lock down measures if they had not already applied for a PPP loan.
Negotiations are underway among lawmakers of how to get the smaller, hardest-hit businesses to tap into a second round of aid.
*This document simplifies complex Acts as it is understood by Time Equipment Company. It is not to be taken as legal advice. The regulations for this program are changing. For further information about the Paycheck Protection Program please visit www.sba.gov or www.coronavirus.gov