Extension To The Paycheck Protection Program Brings Good News For Businesses

Today, some good news for businesses that are still seeking PPP loans, the U.S. House passed an extension of the $660 billion dollar Paycheck Protection Program.

The last day for small businesses to apply for a loan through the Paycheck Protection Program Was Tuesday, June 30, however the U.S. House and senate have passed an extension of the program, which will allow businesses to apply for a loan until next month on August 8.

On Saturday, July 4, the Paycheck Protection Program Extension Act was signed by President Donald Trump, and is now in effect.

Additionally, businesses were initially given 8 weeks to spend their PPP funds appropriately, but that has also been extended, now to 24 weeks.

Michael Gibson, Executive Vice President of Great Southern Bank shares what this means for businesses that have received PPP loans, or hope to apply with the new extension of the program.

“The 24 week period going to open up some issues for a business that maybe the end of the year is a slow time for them and they can’t maintain their payroll or they can’t always maintain the same number of employees due to staffing and such --the demand that they provide. So, having the 24-week period on the surface is a good thing because you can spend all of your money over that 24-week period. It could be an issue, that you’ve got to maintain your payroll numbers and employee count for that full 24-week period vs. that 8-week period,” said Michael Gibson, Executive Vice President of Great Southern Bank.

The U.S. Small business administration has a list of lenders participating in the paycheck protection program by state, for small businesses to apply through.