Paycheck Protection Program Extended For a Final Time
In a somewhat surprising move from the Senate late last week, the Paycheck Protection Program has been extended again for an additional five weeks. This latest extension of the popular relief program gives small businesses through August 8 to apply for the loan. The legislation passed quickly through the House and was signed into law by the President on Saturday, July 4.
Designed to help small businesses struggling during the pandemic, the Paycheck Protection Program was originally passed as part of the CARES Act back in March. The program’s funds were depleted after just 13 days forcing Congress to replenish the funds in mid-April. So far, the program has allocated $520 billion in loans to nearly five million businesses nationwide.
As the program was scheduled to expire last week, the Senate preemptively approved to extend the application period, and the House quickly followed suit. More than $130 billion in loan money remains unspent, which prompted the extension—which required and received agreement from all 100 senators—as one last chance for small businesses to take advantage of this relief program. The extension passed through the House unanimously as well.
Administered by the Small Business Administration (SBA), Paycheck Protection Programs loans are available through approved lenders, fully guaranteed, and eligible for 100% forgiveness, if a company meets certain criteria. Just as with the PPP loan application process, Netchex has created a PPP Loan Forgiveness Report that makes the process easier. Based on the exact information required on the loan forgiveness application, we have created a detailed, custom report that provides everything you need to fill out the application—including employee names, employee IDs, compensation, employer-paid cost benefits, and employer-paid taxes.
With much of the $2.2 trillion stimulus package set to expire in July and widespread spikes forcing many states to slow or scale back re-opening efforts, lawmakers are beginning to debate the details of a new coronavirus relief package. Treasury Secretary Steven Mnuchin and Senator Rick Scott of Florida have mentioned the possibility of repurposing funds or creating new legislation that would send additional aid only to businesses that have experienced a significant loss of revenue during the pandemic.
Follow Netchex for more updates on federal legislation and relief programs designed to help your business remain operational and recover from COVID-19. Visit our resource library and learn more about COVID-specific business and HR solutions.
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