Application Deadline for Small Business Loans Extended
If you missed the boat on the first round of PPP loan applications, we have good news for you. Congress recently passed new legislation that extended the application deadline for a Paycheck Protection Program (PPP) loan through Aug. 8, 2020. The legislation has been sent to President Trump, who is expected to sign the measure into law. Prior to the extension, the deadline to apply for these funds was June 30, 2020. This extension has enabled eligible small businesses to apply for funding for five additional weeks.
WHAT IS THE PPP?
In response to the debilitating effect the COVID-19 pandemic has had on small businesses across the country, the federal government funded a program under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) called the PPP. The PPP is designed to get cash in the hands of suffering small businesses quickly, with less stringent eligibility requirements than the existing Small Business Administration (SBA) loan programs. PPP loans incentivize business owners to keep their workers employed and on payroll. These loans provide 100% federally guaranteed funding to small businesses. In addition, provided that small businesses use their PPP loan funds appropriately, the loans may be eligible for forgiveness.
WHAT ARE THE ELIGIBILITY REQUIREMENTS?
According to the SBA, the following entities may be eligible to receive a PPP loan:
- Any small business that meets the SBA’s size standards (either the industry-based size standard or the alternative size standard)
- Sole proprietors, independent contractors, and self-employed persons
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location with less than 500 employees per location
- Any business, 501(c)(3) nonprofit organization, 501(c)(19) veterans’ organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
- 500 employees, or
- That meets the SBA industry size standard if more than 500
Eligible small businesses that wish to apply for Paycheck Protection Program loan funding should reach out to their financial institution to discuss applying for the loan. In addition, borrowers should direct any questions regarding their Paycheck Protection Program loan to their lender. We will continue to monitor any additional developments regarding the PPP and deliver updates as necessary. For more information about the PPP, do not hesitate to contact Camargo Insurance Agency. Provided by Camargo Insurance Agency
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2020 Zywave, Inc. All rights reserved.