Late Tuesday evening, the U.S. Senate passed — by unanimous consent — a five-week extension of the Paycheck Protection Program (PPP) just a few hours before the application window on the program was scheduled to close. The extension of time allows for applications to be accepted into the program until August 8th.
The measure still has to pass through the U.S. House of Representatives, and be signed by President Trump before the extension would take effect. This passage and signature by the President will have to happen quickly as both chambers of Congress are expected to adjourn by the end of the week for a two-week recess.
This legislation was somewhat of a surprise to many. The move is intended to provide more time for small businesses to apply for the approximately $129 billion in PPP funding still remaining in the program.
Sen. Chris Coons, (D-Del.), said in a tweet that extending the deadline was an important step, and that the next step should be to pass a second round of PPP loans to aid the smallest businesses with the most need.
Sen. Macro Rubio, (R-Fla.), the chair of the Senate Small Business Committee, said in a tweet that he did not object to extending the PPP deadline until Aug. 8, but that the vast majority of small businesses that wanted PPP funds have already used the program.
“What we really need to pass very soon is targeted help for those who need a second round of aid,” Rubio said.
Questions on submitting your PPP loan application or the forgiveness process?
Our team stands ready to assist you through the PPP loan application and forgiveness process. Do not go at it alone. Ensure you are submitting the right information and receiving the highest forgiveness amount possible. Visit our PPP Loan Consulting webpage by clicking here to request assistance or support.
This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although McKonly & Asbury has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.