Paycheck Protection Program Application Deadline in the Process of Being Extended
Laws and regulations are changing rapidly. After articles are published, they are subject to change. Check back regularly for updates.
With just a few hours remaining before the June 30th deadline to submit loan applications under the Paycheck Protection Program (“PPP”), the U.S. Senate moved quickly by unanimous consent to extend the loan application deadline until August 8, 2020. The U.S. House of Representatives approved the extension today. President Trump must sign the legislation before it becomes effective, but most observers believe that will happen quickly. There remains approximately $130 billion uncommitted in the PPP’s $659 billion appropriation.
Congress is already considering other relief program for small businesses, including the Prioritized Paycheck Protection Program (P4) (basically, PPP-Season 2), which, in its current form, would be available to businesses with less than 100 employees, and would be funded with any untapped PPP funding. With the latest PPP extension, Congress may have to consider additional funding for P4, which may make its passage much more contentious.
Additional legislation introduced is the Real Economic Support that Acknowledges Unique Restaurant Assistance Needed to Survive Act of 2020 (i.e., “RESTAURANTS Act”), a $120 billion grant program aimed at assisting workers and food producers for independent restaurants.
Undoubtedly, Congress will be considering many more relief bills as the economic realities of the COVID crisis unfold. Stay tuned.