PPP Loan Application Deadline Extended to August 2020

With many small businesses still struggling, and $134 Billion still left in the available fund, the House and Senate overwhelmingly voted to extend the popular Paycheck Protection Program application deadline from June 30th to until August 8th. If Congress didn’t extend the program, the money that remained as of would eventually have been returned to the Treasury!

Some lawmakers continue to call for new initiatives to help companies that are hardest hit by the pandemic or excluded from the PPP loans. Treasury Secretary Steven Mnuchin communicated that the Trump administration supports enacting additional stimulus legislation by the end of July. There may be revisions to the PPP to help restaurants, hotels and other hard-hit businesses. Some legislators support allowing Chambers of Commerce to apply for PPP funds and setting funds aside for businesses with fewer than 10 employees.

Both lawmakers and the public are in the dark as to how PPP funds have been used, and how the smallest and most disadvantaged companies have fared. Many small business owners didn’t use the program because of concerns about standards they needed to meet to ensure the loans would be forgivable. But should “forgiveness” be the focus? The New York Small Business Development Center confirmed that any PPP funds that are unused in the covered period will be treated, along with the unforgiven portion of funds used in the covered period, as a 5-year loan at 1% and the remaining funds can be used for any SBA approved business expenses.

Re-opening America will be a slow and painful process with plenty of setbacks as new virus surges occur. Businesses with PPP funds should have enough working capital to operate beyond the covered period and enough cash to support operations until the business is cash flow positive again. Does it make sense for a business owner to pay employees that are underutilized in the workplace or sitting at home and cannot telecommute? So to get forgiveness you pay an employee to sit at home, when in most cases they could make more from unemployment compensation – wouldn’t it be better to use the PPP $$$ for other uses? Or to extend capital?

Reach Out To Us: Pandemic times require innovative solutions. There are many factors that go into making workforce and operational decisions. Let us help you examine your PPP options and choices in which to best deploy your PPP funds. We’ll help to keep your company viable not just through the “covered period” but through the end of the current economic hardships. Got questions? We have answers at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .