One day after the expiration of the Paycheck Protection Program, Congress voted to extend the application deadline through August 8. PPP expired on June 30th with nearly $130 billion remaining in the program to be loaned out to small businesses impacted by COVID-19. The legislation was passed with unanimous consent in the Senate late on June 30th and agreed to by the House on July 1st, President Trump is expected to sign the bill quickly.
Businesses that apply for PPP funds can receive up to 10 weeks of payroll expenses that can be spent over 24 weeks on payroll and certain business expenses such as rent, mortgage interest, and utilities. If the loans are spent on approved expenses and the business retains workers and wages the entire loan can be forgiven by the Small Business Administration.
While the program was hugely successful in the first months of the pandemic the program has slowed recently as states began to reopen and fewer businesses needed the funds to continue in operation. Since starting on April 3rd, more than 4.5 million loans have been distributed through lenders and backed by the Small Business Administration. According to the U.S. Census Small Business Pulse Survey, 72.3 percent of small business respondents had received funding through PPP.