Just when you thought the PPP was gone (6/30/2020), the Senate and then the House passed an extension.
Since it was originally announced with the Coronavirus Aid, Relief and Economic Security Act (CARES), the PPP has disbursed most, but not all of the funds. The extension to 8/5/2020 is intended to provide more time for small businesses to apply for the approximately $129 billion in PPP funds that remain. HERE
Initially, recipients had 8 weeks to spend the money in accordance with the rules. Later, that was changed to 24 weeks, making it a lot easier to turn that loan into a forgivable grant.
A portion of the funds, 60% or more, must be spent in qualified payroll expenses. The rest can be spent for rent and utilities.
The loan amount is calculated based on 2.5 times the average monthly salary amount. With a time frame of 24 weeks, the businesses have some time to open in compliance with local regarding coronavirus restrictions.
Applications for the initial PPP loan program were made through banks and fintech companies like Square, PayPal, Intuit, Stripe, Kabbage and others. Most banks will require that you to have an existing business relationship with the bank before they will take your application. It appears that the fintech companies are a little easier to use for many small businesses.
If you don’t yet have your PPP loan, you have a second chance.
More information you need to know!