Congress Extends Application Period for Paycheck Protection Program (PPP) Loans
Approximately $130 Billion Still Available
The application period for the federal Paycheck Protection Program, enacted to help small businesses that are suffering due to the COVID-19 pandemic, has been extended through August 8, 2020. Officials say that approximately $130 is still available to help small business meet payroll as the economy struggles to recover.
The PPP was initially implemented in late April, with $349 billion set aside for small businesses. Those funds were gone in less than two weeks, leading Congress to authorize a second round of $310 billion. In late May, Congress approved an extension of the application period. That revision to the law was signed by the President on Saturday, July 4, 2020.
The loans made under the Paycheck Protection Program are generally forgivable, provided small business owners use the funds for permissible expenses and follow other rules. Congress also made other revisions to the law when they extended the application period:
- The percentage of each loan that must be spent on payroll has been reduced from 75% to 60%.
- Businesses now have 24 weeks to spend the funds, rather that the 8 weeks set forth in the initial version of the law.
- Businesses must hire back any furloughed workers by the end of 2020 in order to have their salaries forgiven.
The bill extending the application period passed both the House and Senate unanimously.
Contact MCIS Law for Assistance with Forgiveness of a PPP Loan
At MCIS Law, PLLC, in Stafford, we provide comprehensive counsel to startup and existing businesses in southeast Texas. We have a comprehensive understanding ofthe procedures involved in applying for, securing, and obtaining forgiveness of a PPP loan. For a confidential consultation with an experienced and knowledgeable lawyer, email us or call our office at (346) 297-0121 We are currently communicating with clients by phone, text message, and videoconference. We accept all major credit cards.
