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07-02-20 | Legislation

New PPP Legislation Extends Application Deadline

Businesses Can Apply for Loans through August 8

The House passed new legislation extending the application date for a PPP loan. The President is expected to sign the bill.

On July 1, the House passes a bill that extends the PPP program through August 8. The first legislation was passed in March as part of the CARES Act. It provided approximately $350 billion to businesses to help support their ability to pay their employees. Another $310 billion was added to this amount at a later point totaling $660 billion put into the program. At the start of July, almost five million companies have received a loan. However, the fund still has about $130 billion left to be distributed to firms prompting Congress to make an extension on when applications for the loan can be submitted.

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The Paycheck Protection Flexibility Act was passed at the beginning of June. It loosened the regulations on how long each company had to spend the money and where that money could be allocated to within the organization. The extension passed the House hours before the June 30 deadline was reached and will now go to the White House for the President to sign. Having been passed unanimously by the House, the new legislation is expected to be approved by the President soon.

While there is seemingly universal agreement on the benefit the extension can provide for businesses around the country, there are entities that have expressed concern over the program's usefulness and scope. As reported by CNN, House Small Business Committee Chairwoman Nydia Velazquez said, "We need to make an assessment whether or not the program has been successful. We need the data to be able to conclude that this is the way to go."

Additionally, NAHB had commented on the PPP extension, as they encourage the program to be more inclusive in the organizations able to apply for the loan. "NAHB continues to advocate for an expansion of the eligibility requirements to allow more small businesses in the residential construction sector and 501(c)(6) organizations to access the loan program."

Filed Under: PPP, GOVERNMENT, COVID, BUSINESS, NAHB

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