Extension of Small Business Loan Program Signed by President Trump
To assist individuals, families, and businesses that have been impacted by the COVID-19 pandemic, the government passed the Paycheck Protection Program (PPP) in March. PPP allowed businesses to receive direct government subsidies for payroll, rent, and other expenses. These payments for businesses came in the form of loans with the potential to be forgiven if at least 60% of it was used towards payroll.
As time went on into the pandemic, the government has found that financing continued to be necessary. This called for additional funding to be passed for PPP loans. While the deadline to continue filing for these loans passed, there still remains $130 billion out of the $660 billion that was allocated. It is because of this that both houses of Congress approved an extension of the loans. Following up, President Trump signed legislation to push the deadline for small businesses to apply for PPP until August 8.
To date, the program has provided about $520 billion in loans to almost 5 million small businesses throughout the country. Originally, the funding was meant to cover roughly two and a half months of a business’ general expenses. However, businesses are now facing challenges different than those of the beginning of the pandemic. It is because of this that those who sponsor the program now say they want the funding to be repurposed so it can help small businesses with these newer challenges. Speaking on the matter, Florida Senator Marco Rubio stated that “longer-term support is necessary” and he wants to see additional support for “our smallest businesses, especially in our underserved communities.”
How do I Apply for a PPP Loan?
In order to apply for a PPP loan for your small business, it is important to be aware of the proper steps that must be taken. This includes the following:
- Access your PPP application
- Add or confirm existing business information. This includes the business address, type, tax ID, the loan amount requested, and employee count.
- Add new requirements for business information
- Enter or confirm ownership. The ownership percentage must be greater than 0.
- Enter or confirm additional owner information. You must add information for anyone with at least a 20% share in the business.
- Upload or confirm documents. This includes a driver’s license and acceptable payroll documents.
- Check your email for additional instructions from your lender.
Contact our Firm
The Law Offices of Richard E. Novak, LLC has over 25 years of experience helping clients through tough times when they need it most. If you need assistance with any intellectual property, traffic violations, or business law matters, our firm is here to help. It is critical that you pick the right attorney who can protect your rights. Contact The Law Offices of Richard E. Novak, LLC for a consultation.