Until when has the coronavirus PPP small business loan deadline been extended?
The Senate voted to extend the deadline to apply for small business loan Paycheck Protection Program (PPP) until the second week of next month.
The deadline to apply for a Paycheck Protection Program (PPP) small business loan was extended until 8 August after the Senate unanimously voted to prolong the initiative by an additional five weeks. The $660 billion Paycheck Protection Program was passed as part of the CARES Act in March to give financial aid to small businesses, providing loans to pay salaries and other expenses during the coronavirus crisis. The loans would be written off forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
PPP loan deadline extended by five weeks
Until Tuesday’s decision by the Senate, the deadline to apply for a PPP loan ended at 23:59 hours on 30 June. The extension, which still needs to be signed off by US President Donald Trump, will run until 23:59 hours on Saturday 8 August unless another extension is passed by the House in the meantime.
Since its introduction at the start of April, the PPP has been revised to lend support to smaller ‘Main Street’ businesses as well as major companies. The Paycheck Protection Program Flexibility Act (PPPFA) was signed off on 5 June and changed some of the small print regarding loan maturity, deferral of loan payments and forgiveness provisions. The repayment period was changed from two to five years while you can now choose to spend as little as 60% rather than 75% on payroll expenses. The PPPFA also increases the time to use the loan from eight weeks to 24 weeks, which helps borrowers to reach the point when the loan will be forgiven.
Lending alternatives - some small businesses were finding problems getting loan approval from a traditional bank but now there is an option to go through a ‘non-traditional’ lender, which could be quicker and more efficient. This includes PayPal, Intuit Quickbooks, Square, and Funding Circle.