APPLICATION DEADLINE FOR SMALL BUSINESS LOANS EXTENDED
Congress has passed legislation to extend the application deadline for a Paycheck Protection Program (PPP) loan through Aug. 8, 2020. Prior to the extension, the deadline to apply for these funds was June 30, 2020. The extension enables eligible small businesses to apply for funding for five more weeks. The legislation has been sent to President Trump, who is expected to sign the measure into law.
What is THE PPP?
In response to the debilitating effect the COVID-19 pandemic has had on small businesses across the country, the federal government funded a program under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) called the PPP.
The PPP is designed to get cash in the hands of suffering small businesses quickly, with less stringent eligibility requirements than the existing U.S. Small Business Administration (SBA) loan programs. PPP loans are designed to incentivize business owners to keep employees on payroll. These loans provide 100% federally guaranteed loans to small businesses. In addition, provided that small businesses use their PPP loan funds appropriately, the loans may be eligible for forgiveness.
What Are The Eligibility Requirements?
According to the SBA, the following entities affect by the COVID-19 pandemic may be eligible to receive a PPP loan:
Source – Zywave, Inc.