Deadline Extended For New PPP Loan Applications

Greenbaum, Rowe, Smith & Davis LLP
Contact

The Small Business Administration’s Paycheck Protection Program has provided forgivable loans to businesses designed to maintain employment levels by covering payroll and other expenses during the COVID-19 crisis. While many businesses have taken advantage of the program, there still remains more than $120 billion in funds available for PPP loans. To provide additional aid to businesses, the application deadline for PPP loans was recently extended from June 30 to August 8, 2020.

This extension provides extra time for businesses that have not yet applied for PPP funds, however it does not allow any additional loans to a business that has already received a PPP loan. Borrowers can obtain PPP loans for an amount equal to 2.5 times monthly payroll expenses. Borrowers will have a 24-week period to spend the loan proceeds and then apply for forgiveness. The loans carry a 1% interest rate and may be paid over 5 years.

Congress has indicated in recent weeks that it plans to pass an additional stimulus package targeted to small businesses struggling with the economic impacts of the COVID-19 pandemic. We will continue to monitor developments related to the PPP and will advise when any new legislation is adopted.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Greenbaum, Rowe, Smith & Davis LLP | Attorney Advertising

Written by:

Greenbaum, Rowe, Smith & Davis LLP
Contact
more
less

Greenbaum, Rowe, Smith & Davis LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.