Congress Passes Five-Week Extension for Paycheck Protection Program
As reported by The New York Times, Congress recently passed an extension for small businesses and organizations to apply for Paycheck Protection Program (PPP) funds. The new deadline for applications is Aug. 8, 2020. Here’s what you need to know.
PPP Background Info and New Deadline
Originally passed right as the coronavirus pandemic was escalating in the United States, the PPP permits small businesses to apply for loans that supplemented payroll and other operating expenses.
On June 5, 2020, several key changes were made to the legislation to make it easier for applicants to meet the plan’s original requirements, which quickly became more difficult to meet the longer the pandemic raged.
President Trump signed the latest extension into law on July 4, 2020.
Why was the Program Extended Another Five Weeks?
In a CNN story published on June 30, 2020, it was reported that approximately $130 billion in allocated PPP funds remained unused.
The same piece indicated that “more than 4.8 million small businesses owners have utilized the program” and that “more than $520 billion has been deployed to keep small businesses afloat.” As a result, the PPP remains one of the most critical pieces of COVID-19 legislation to keep the economy from further harm—and keep regular paychecks in the hands of workers throughout the country.
According to reporting from CNBC, part of the issue in leftover funds is that many of the businesses who most needed help have already received—and spent—their loans. The unfortunate reality is that there isn’t a determined date when life will return to “normal,” and as the CNBC piece notes, this makes it especially difficult for businesses to continue operations without additional assistance beyond a deadline extension.
How Do I Access PPP Funds?
In essence, the funds are available to those who need them. Small businesses in need of critical funding to remain in operation should work with their local banking institutions to access PPP dollars.
There may be other changes as the pandemic continues to develop. For example, COVID-19 cases continue to rise throughout most of the country, so employers need to remain up-to-date on the latest developments.
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