Congress Breathes New Life into Paycheck Protection Program
The Senate unexpectedly voted to extend the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) hours before it expired, with more than $130 billion in funds left unused. The legislation, passed with unanimous consent, moves the deadline to apply for PPP loans from June 30 to August 8. The House followed suit with another unanimous vote of approval, a rarity on Capitol Hill.
Demand for the forgivable PPP loans was initially high but has since slowed as rules governing the program changed numerous times, resulting in uncertainty over eligibility and loan terms. The extension gives businesses impacted by the recent surge in COVID-19 cases time to seek relief. It also gives Congress more time to figure out what to do with the unused funds to better support small businesses in need. The August deadline coincides with the Senate’s target date for introducing another COVID-19 stimulus bill. AMT will keep you updated as details emerge.
Visit the SBA for more information on the PPP and other programs providing resources for small businesses impacted by the pandemic at www.sba.gov.