If you are a small business and still need financial assistance during these challenging circumstances,you now have more time to do so.
On July 4, President Trump signed a bill that extends the application date for PPP loans to August 8.
- The window to apply was originally set to expire on June 30. The new extension gives business owners 5 extra weeks to submit their applications.
- The PPP grants forgivable loans to small businesses for payroll and other costs to run their entities. The program is an incentive to keep workers on payroll.
- To apply, fill out the PPP borrower application (Form 2483) and bring the form to a participating lender in your state.
- $650 billion in loans was created under the CARES Act. The Small Business Administration (SBA) has approved $4.9 million in loans through June 30, equating to over $520 billion in aid. This leaves about $130 billion left to be spent on further aid.
- The average loan size is about $100,000, according to Treasury Secretary Steven. T. Mnuchin.
- Speculation is stirring about the possibility of a second stimulus check in the foreseeable future. However, no official announcement has been made.
- Senators will continue negotiations on the Prioritized Paycheck Protection Program Act (P4), a plan that would authorize new PPP lending for small businesses that have already exhausted their initial PPP funds. Businesses must have less than 100 employees to qualify. If passed, this bill would also extend the application date even further to December 30.
With this extension and the PPP Flex Act signed last month, small-business owners continue to receive more incentive to apply for aid.
As coronavirus cases resurge, we continue to face uncertain times and we are here to help.
Edited by Kaitlin Boyer
Christopher Boyer is an Accountant, Bookkeeper, Enrolled Agent & QuickBooks Pro Advisor. Chris provides a wide array of business consulting services, taxes and IRS representation for business owners, individuals, families, corporations, trusts, and estates.