On July 4th, President Trump signed into law a temporary extension to apply for the Paycheck Protection Program (PPP). The deadline for small businesses to apply for approximately $134 billion in PPP funds has been extended until August 8. Originally the deadline was June 30.

The PPP is a major relief package to small businesses. Since its launch in early April, nearly 4.8 million loans have been granted to small businesses faced with shutdowns due to the pandemic, totaling more than $518 billion, according to the Small Business Administration. The loans are forgivable if businesses meet a few guidelines, including using 60% of the loan to keep employees on payroll. 

Despite the success of the program, the fact that more than $130 billion remains unclaimed illustrates some shortcomings. Some small business owners may have been reluctant to apply for the loans as guidelines changed numerous times and concern with meeting the 60% payroll threshold. The extension offers businesses a measure of small business relief with an additional five weeks to apply for a PPP forgivable loan.

Here is the link to Bill S. 4116

More coronavirus relief plans are in the works. Stay tuned.

For additional information about all COVID-19 Tax & Business Implications,visit http://www.isdanerllc.com/covid-19-tax-business-implications/