PPP loans: what you need to know about the latest changes
Small business owners who haven’t yet applied forgivable loans designed to relieve economic pain of the Covid-19 pandemic now have another chance. Congress passed a law extending the deadline for submitting applications for the federal paycheck protection program, and President Trump signed the bill on July 4.
Below are the answers to frequently asked questions about the program:
What is the new deadline for PPP applications?
Small business owners now have until August 8 to apply for P3 loans. The Small Business Administration will begin accepting loan applications on Monday, an SBA official said. The initial program deadline was June 30.
Why is Congress extending the program? I thought the money was used up.
About $ 130 billion of the $ 670 billion earmarked for PPP remains unclaimed. It took less than two weeks to exhaust the initial $ 350 billion in PPP funding, but demand was lower afterward. Congress has allocated additional funds to the program.
In addition, more than 170,000 loans totaling about $ 38.5 billion were canceled as of May 31, according to a June 25 report by the US Government Accountability Office. Some borrowers have returned their loans after the Treasury Department said that state-owned enterprises and others with other sources of funding should not operate the PPP; others returned funds because they did not feel they could meet the initial spending requirements of the program because, for example, their business remained closed.