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President signed legislation (S.4116) on the Fourth of July extending the deadline to apply for the Paycheck Protection Program (PPP). Now, small employers now have until August 8, 2020 to apply for a PPP loan.
PPP was implemented under the Coronavirus Aid, Relief and Economic Security (CARES) Act to allow small employers to seek a PPP loan to help bridge the cost of maintaining employees during the COVID-19 business shutdowns. Under the original CARES Act, PPP loans were available until June 30, 2020. These PPP loans may be entirely forgiven if the employer uses at least 60% of the loan proceeds to cover payroll costs during a 24 week period after loan disbursement.
The original deadline to apply for the PPP loan was June 30, 2020. However, with $130 billion in funding remaining of the total $659 billion allocated under the CARES Act as of June 30, the Senate introduced a bill to extend the deadline to August 8. The House passed the bill on July 1, followed by Trump’s sign off on July 4. See here and here.
