On Saturday, July 4th, as Americans celebrated Independence Day, President Trump signed a five-week extension of the Paycheck Protection Program into law. The extension was approved by the Senate Tuesday evening, just hours after the deadline for the popular program expired. The House followed suit by unanimously approving the extension on Wednesday, paving the way for the President’s signature on Saturday.
PPP Loan Extension Implications
The extension provides an additional five weeks for small and other qualified businesses to submit applications for the approximately $129 billion of PPP funding that remained available as of June 30, the date the program was originally set to expire.
The PPP loan program, which was launched in early April as part of the CARES Act, provides forgivable loans that qualifying businesses can use to cover payroll-related costs as well as rent, utilities, and other specified costs.
The extension allows the Small Business Administration (SBA), which oversees the program on behalf of the Treasury Department, to continue accepting applications through August 8th.
Since its inception, more than $520 billion of potentially forgivable loans have been issued to approximately 4.8 million small businesses across the US.
This is not the first time that the PPP program has been extended. The initial round of funding approved under the CARES Act, approximately $349 billion, was depleted in less than two weeks, prompting Congress to act quickly to approve an additional $310 billion in funding.
How Can We Help?
We advise borrowers to reach out to your Calvetti Ferguson Partner to discuss your particular facts & circumstances so we may ensure you remain in compliance while maximizing your opportunity for debt forgiveness.
- We assist clients with forecasting and modeling the PPP loan forgiveness calculation which will include scenario planning and strategies to maximize the forgiveness amount.
- We assist clients with monitoring of actual costs to planned costs over the chosen covered period.
- We provide guidance on optimizing the application of costs to various sources of funding received.
- We provide assistance to clients with the preparation of the final PPP Loan Forgiveness Calculation.
- We review management-prepared loan forgiveness calculations and provide guidance on compliance and maximizing debt forgiveness.
It can be difficult to make sense of all the new legislation passed in the wake of COVID-19. Contact us to help you navigate through this pandemic and check out our COVID-19 Resources page for more information.