The application process for the Paycheck Protection Program – PPP – has been extended to August 8th after Donald Trump signed a new law that would allow people to use the program well into the first week of August.
The Paycheck Protection Program is a loan that is designed to provide small businesses with a direct incentive to keep their employees on the payroll according to the official website of the Small Business Association.
The Paycheck Protection Program will resume applications on July 6, 2020 at 9:00 a.m. EDT in response to the President’s signing of the program’s renewal legislation. The new deadline for applying for a loan for the paycheck protection program is August 8, 2020 – the website says after Trump signed the law.
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Why was the PPP introduced?
The program was introduced under the CARES Act at the start of the coronavirus pandemic and was Introduced to American Small Businesses to provide eight weeks of cash flow support through 100 percent federally guaranteed loans. According to the SBA and the Treasury Department, 4.9 million have been spent so far.
“The average loan size is approximately $ 100,000, which shows that the program can benefit even the smallest businesses.” That said Treasury Secretary Steven T. Mnuchin. “Today’s release of credit data strikes the right balance to provide transparency to the American people while protecting sensitive pay and income information of small businesses, sole proprietorships, and independent contractors.”
The PPP has been optimized to support the major road companies as well as their larger counterparts. The Paycheck Protection Program Flexibility Act was signed in early June, extending the period and expanding the use of the credit. The repayment period has been changed from two to five years, while now you can choose to only spend 60% instead of the 75% previously stated on payroll. The Flexibility Act also extends the useful life of the loan from eight to 24 weeks and helps borrowers achieve full forgiveness.