In a surprise move, the United States Senate unanimously voted to extend the Paycheck Protection Program’s (PPP) application deadline. The program, which has approximately $130 billion in unspent loan money, had been set to expire on July 1, 2020. Under the proposed bill, small businesses can apply for a PPP loan until August 8, 2020. The bill will now move to the United States House of Representatives and after its passage in the House, require the President’s signature. If this bill is signed into law, it is great news for small businesses that have been evaluating when to reopen their doors and bring back employees. This extension allows businesses to access the help that they need to reopen fully.
Additionally, the SBA has provided additional guidance regarding the loan forgiveness application. Borrowers may apply for loan forgiveness prior to the end of the covered period or maturity date of the loan, if the borrower has used all the loan proceeds for which the borrower is seeking forgiveness. The covered period will not extend beyond December 31, 2020. Kaufman & Canoles will continue to monitor the situation and will provide more information as it becomes available.
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