The President signed a bill this holiday weekend that gives small businesses and nonprofits additional time to apply for Paycheck Protection Program (PPP) relief loans. Applicants now have until August 8, 2020 to submit their applications to a participating financial institution.
Under the CARES Act, the PPP application period closed on June 30. That deadline passed with more than $130 billion of PPP funds still unused. This 5-week extension will allow more borrowers to receive low-interest, potentially forgivable loans up to $10 million to recover from COVID-19 losses.
When passing the bill, the House called on the Small Business Administration to continue to clarify confusing guidance, ensure PPP funds are reaching underserved businesses, and release more data on how PPP funds are being used. Grassi’s Emergency Loan consultants are monitoring these developments and will provide real-time updates as they are available.
In addition to the deadline extension, the PPP Flexibility Act that was signed into law last month gives borrowers more time to use PPP funds and rehire their employees to qualify for loan forgiveness.
If these recent changes have made you reconsider applying for a PPP loan, or if you have any questions about determining your eligibility for a loan or forgiveness, please contact your Grassi advisors or our Crisis Response & Recovery hotline at 212.223.6216 or response@grassiadvisors.com.
