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PPP Extension to August 8

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CLIENT UPDATE: Congress passes a bill extending the application period for the Paycheck Protection Program (“PPP”) to August 8, 2020.

On July 1, 2020, the U.S. House of Representatives joined the Senate and unanimously passed a bill providing for a five-week extension of the application period for the popular PPP to August 8, 2020. A cornerstone of the CARES Act’s small business relief efforts, the PPP provides potentially forgivable loans to eligible small businesses struggling to meet payroll and other expenses due to the COVID-19 public health emergency. The program was set to expire on June 30, 2020; however, because there were still approximately $130 billion in appropriated funds remaining, Congress determined that an extension was warranted.  This extension should enable eligible small businesses that have not yet applied for a PPP loan to take advantage of the same.   

The bill will now go to the President’s desk for his signature, and he is expected to sign the bill into law. Wadleigh’s COVID-19 Response Team will continue to monitor this situation closely and provide updates as the situation develops.