Federal legislation was enacted earlier this week that extends the Paycheck Protection Program through August 8. The program was originally to expire on June 30.
AGSC members seeking financial relief from the economic effects of the coronavirus crisis now have additional weeks to apply for aid from the program that provides loans that are potentially forgivable to qualified applicants.
Approximately $130 billion in unused funds were said to be still available under the program.
The PPP was enacted as part of the March 27 CARES Act to provide quick relief to small business owners experiencing economic hardship due to the response to the coronavirus. The program promised low interest, possibly forgivable, loans of up to $10 million, for eight weeks of payroll plus 25% more for rent, mortgage, utilities, etc. The program has since been modified to allow for as little as 60% of the funds to be used for payroll and to allow for forgiveness for expenses beyond the original period through December 31, 2020.
Exceptions are now also provided for businesses that cannot reopen fully due to restrictions, such as customer capacity with appropriate documentation of the inability to rehire employees or similarly qualified workers or because of compliance with government issued health and safety mandates and guidance.