PPP Deadline extended to August 8

PPP Deadline extended to August 8
Posted on 08/05/2020

Small businesses and nonprofits are encouraged to apply for the Paycheck Protection Program (PPP) for potentially forgivable business loans by the August 8th deadline. The Small Business Administration (SBA) has money left in the PPP fund as of July 31st. The Senate is considering a second PPP as part of the HEALS Act.  These loans may be more restrictive and available in smaller amounts.  Businesses and organizations who have not previously applied are encouraged to do so immediately.

The PPP is available to businesses currently open and operating. The loan aids businesses to stay open during the pandemic.

Changes in the PPP allow applications from all nonprofits as well as local news entities.

The updated PPP reduced the amount of the loan requirement that must be spent on payroll from 75% to 60%. The PPP loan may now be used to pay for business-related expenses including:

  • Covered operations expenditures, including payment for any software, cloud computing, and other human resources and accounting needs.
  • Property damage costs, including expenses related to property damage not covered by insurance due to public disturbances that occurred this year.
  • Covered supplier costs, including expenditures to a supplier pursuant to a contract for goods in effect prior to February 15, 2020 that are essential to the recipient’s current operations.
  • Covered worker protection expenditures, including personal protective equipment (PPE) and adaptive investments to help a loan recipient comply with federal health and safety guidelines related to COVID-19 during the period between March 1, 2020, and December 31, 2020.

The SBA has updated their website to include various tools needed to apply for the loan. The website offers lender match services to connect with eligible lenders. PPP Loans must be submitted with an approved SBA lender. A new service on the website assists businesses to find local assistance for the application and loan requirements to maximize the opportunity for loan forgiveness.

The Economic Injury Disaster Loan (EIDL) is open for all businesses including current PPP loan recipients to apply. The EIDL is also available for landlords and nonprofits.

For more information and an application, visit https://www.sba.gov/paycheckprotection