The U.S. Senate and House of Representatives unanimously agreed, and the President signed the legislation extending the Paycheck Protection Program (PPP) by five weeks to continue providing relief for small businesses impacted by the COVID-19 pandemic. PPP applications initially closed on June 30 when the Senate voted for a last-minute extension. The extension now gives small businesses until August 8 to apply for a share of the approximately $129 billion in remaining PPP funding through the Small Business Administration (SBA).
As a result of the PPP Flexibility Act, PPP loan recipients have 24 weeks to use loan funds for payroll and other essential expenses like rent/mortgage and utilities. The Flexibility Act also lowered the threshold for payroll expenses to 60% to achieve full forgiveness with a few safe harbor considerations. More 4.9 million loans have been approved by the SBA so far, worth more than $520 billion.
If you have questions about the new PPP loan applications or need assistance with another issue, Selden Fox can help. For additional information call us at 630.954.1400 or click here to contact us. We look forward to speaking with you soon.