Senate Approves Last-Minute Extension to Apply for PPP Funds

On Behalf of Odin, Feldman & Pittleman, P.C. | Jul 1, 2020 | COVID-19

In a surprise move, the U.S. Senate last evening voted to extend the deadline to apply for a loan under the Paycheck Protection Program (PPP) to Aug. 8. The move came hours before the deadline for applying for a PPP loan was set to expire even though more than $100 million remain in the federal coffers.

The bill was approved by unanimous vote in the Senate and will now head to the House of Representatives.

Since its inception in late March, the PPP has been fraught with myriad ambiguities, requiring the Small Business Administration (SBA) to issue several rounds of clarifications and updated guidance to ensure the program’s availability to as many struggling small businesses as possible. The PPP is designed to provide a financial safety net to stave off employee layoffs and help small businesses weather the effects of the COVID-19 pandemic. As previously reported, a key feature of the program promises to convert the loans to grants for organizations that strictly adhere to guidelines for utilizing the funds and for applying for loan forgiveness.

To date, the government reports that some 4.8 million businesses have applied for and received approximately $520 billion in PPP aid. For more information, contact the OFP Corporate Group.

Disclaimer: The information contained herein is provided for informational purposes only and should not be construed as legal advice on any subject matter. This information contained herein is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice. Any information contained in this article is not intended to be a substitute for legal counsel. No one should act or refrain from acting on the basis of any content included in this article but should instead seek the appropriate legal advice on the particular facts and circumstances at issue from a properly licensed attorney. The author expressly disclaims all liability in respect to actions taken or not taken based on any of the contents of this article. This article contains general information and may not reflect current legal developments.