On the Way to the White House
To the surprise of many observers (this one included), in the course of two days, the Senate by unanimous consent and then the House of Representatives by unanimous consent passed an extension to the period for application for Paycheck Protection Program (“PPP”) loans to August 8, a five-week extension. As of July 2, the measure now goes to President Trump to sign into law.
It remains to be seen how much this extension will invigorate applications for PPP loans. There are still about $120 billion appropriated and still available for loans under the program. In the last few weeks, demand for the loans has tapered off considerably.
This change will have to be incorporated in existing forms, guidance, processes and systems. The start of acceptance of PPP Loan forgiveness applications, which most authorized lenders planned to begin processing in July and August, should not be delayed significantly. For the most part, the loan forgiveness application process currently is not time sensitive. Generally, borrowers and lenders have several months to execute the process.
When Congress returns from its Independence Day recess, it will take up other COVID-19 fiscal relief programs. Proposals include more relief for businesses, revised and additional Economic Impact Payments for individuals, and the possible blanket forgiveness of PPP loans below a certain dollar threshold. Currently, there is discussion about blanket forgiveness of loans of less than $150,000. There should be other ideas that will emerge.
This action was a fine example of bicameral and bipartisan cooperation for the benefit of our country. What a nice way to enter the Independence Day holiday.
For more information check out HM&M’s COVID-19 Resources page.
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