The House has unanimously passed a bill that will extend the Paycheck Protection Program (PPP) until August 8th, which was originally set to end on June 30th. The bill now awaits President Trump’s signature to officially extend the federal government program that provides forgivable loans to small businesses economically impacted by the COVID-19 crisis.
The PPP received $670 billion in funding through the CARES Act, in March, and from April’s follow-on relief package. The program currently has $4.9 million loans outstanding, totaling $521 billion, according to U.S. Small Business Administration (SBA) data. Lawmakers are currently putting forth different proposals on how to spend the leftover money.
The PPP was created to help small businesses recover from Covid-related economic loss, and provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program.
As stipulated by the SBA, small businesses can apply for PPP through “any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.”