PPP Extension Passed in House; Automatic Forgiveness Measure Introduced

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PPP Extension Passed in House; Automatic Forgiveness Measure Introduced

The U.S. House of Representatives has joined the Senate in passing a bill that will extend the loan application period for the Paycheck Protection Program (PPP) until August 8, 2020. It is expected that President Trump will sign the bill into law this week. The program had ended on June 30, but of the PPP program's $660 billion in available funds, an estimated $130 billion remain available.

The Paycheck Protection Program was introduced in April to provide loans to businesses with 500 or fewer employees to enable them to cover payroll and other select costs, including rent, mortgage interest and utilities.

In addition to the PPP program extension, four members of the Senate Banking Committee have introduced a bill that would simplify the process of applying for PPP loan forgiveness for all loans of $150,000 or less. The Paycheck Protection Small Business Forgiveness Act would require the borrower to submit a one-page attestation form, and would hold the lender harmless from enforcement action if the borrower's attestation contained falsehoods. It is estimated that approximately 85% of PPP loans would be eligible for this simplified loan forgiveness process.

For more information about the PPP loan program or other COVID-19 related financial recovery ideas, please visit our COVID-19 page here , or call (781) 407-0300.

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