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.
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