Contrary to popular belief, there is still plenty of funding to go around with the Paycheck Protection Program (PPP). While roughly $520 billion has been approved and — for the most part — distributed to some 4.9 million loan applicants as of early July, there’s still about $130 billion in funding up for grabs.
With that much still available, the Trump administration approved a five-week extension for small businesses to apply for funding. Which means you now have until August 8 to file a loan application.
“The PPP program has been a literal lifeline for millions of small businesses impacted by the COVID-19 pandemic, and instead of letting it expire tonight (June 30), the Senate has come together to unanimously pass our bill to extend it and continue providing desperately needed aid to small businesses,” Sen. Chris Coons (D-DE), one of the sponsors of the bill, said in a statement via Forbes.
The U.S. Small Business Administration (SBA) initially closed the application portal back on June 30, the date the program was set to expire. With the new extension signed by the president on July 3, the portal is once again open and accepting applications.
Since its initial launch in April, the PPP program has undergone a slight change. The rules for loan forgiveness were actually relaxed a little by Congress. At first, 75% of the PPP loan was required to be used for payroll purposes. Congress has since reduced that number to 60% of payroll.
Small businesses with 500 or fewer employees — including nonprofits, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors — are eligible. Businesses with more than 500 employees are eligible in certain industries.
More information on PPP loans is available through the SBA website.