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Congress Extends Deadline to Apply for Paycheck Protection Program Loans

With the deadline for businesses to apply for loans under the Small Business Administration’s Paycheck Protection Program (“PPP”) passing on June 30th, Congress voted on Wednesday, July 1st to extend the deadline for submitting PPP loan applications to August 8, 2020. Both the House and Senate passed the bill by unanimous consent. The president signed the bill into law on July 4th.

The move comes as $130 billion of funds Congress initially allocated to the PPP remains available to qualified businesses. The extension gives such businesses another approximately five weeks to apply for PPP funds.

The bill did not modify any other aspects of the PPP other than the deadline to submit a PPP loan application. In late May, Congress passed the Paycheck Protection Program Flexibility Act that made significant changes to the PPP, particularly with respect to loan forgiveness, including extending the covered period within which borrowers were permitted to use PPP funds from June 30, 2020 to December 31, 2020 and allowing borrowers to elect a 24-week period for calculating loan forgiveness expenditures instead of the original 8-week period.

 


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