Loan Application Period for the Paycheck Protection Program Extended
Article Highlights: - Loan Application Period Extended
- Paycheck Protection Program
- Qualifying Expenses
- Loan Forgiveness
If you missed the opportunity to apply for a Paycheck Protection Program (PPP) loan before the program expired at the end of June, Congress extended the application period for a PPP loan through August 8, 2020. Although time is short, you still have time to apply.
If you are unfamiliar with this program, Congress created the PPP as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and authorized the use of the SBA’s small business lending program to provide forgivable loans of up to $10 million per qualifying business. The loans are to support small businesses in dealing with the economic hardships created by the coronavirus pandemic and primarily to assist them with continuing to pay employee salaries.
Small businesses are those with 500 or fewer employees, including those filing Schedule Cs (self-employed, sole proprietorships, or independent contractors), as well as non-profits and veterans’ organizations.
The loans are forgivable to the extent that the funds are used to pay for certain specified expenses, including payroll, rent, lease payments, mortgage interest, and utilities during the 24-week period following the loan being funded or by December 31, 2020, if earlier. To qualify for full forgiveness, a borrower must use the loan proceeds for eligible expenses and meet certain other criteria. The forgiveness may be reduced if an employer does not maintain their employee head count or reduces the pay per employee.
There is approximately $130 billion left in the fund, and the loans are doled out on a first-come, first-serve basis. For more information or assistance, or to determine if your business qualifies for a PPP loan, please give the office a call.
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