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- Deadline to apply for PPP loan is August 8; congress republicans pushing to extend for hardest hit small businesses
- $130 billion allocated for the loan remains unspent: what to do with extra cash?
- Treasury has released an FAQ for borrowers to navigate maximum loan forgiveness
- PPP loan forgiveness applications will guarantee a busy fall for accountants
With the August 8 deadline to apply for a PPP loan set for tomorrow, Republican lawmakers are rushing to pass legislation that will extend the deadline for smaller businesses that are still struggling. Senators Rubio (R-FL) and Collins (R-ME) have proposed the Continuing Small Business Recovery and Paycheck Protection Program Act which would provide $60 billion in relief for such small businesses with 300 employees or fewer.
Currently, $130 billion of the $650 billion set aside by Congress for the PPP loan program remains unspent. While Senate Majority leader McConnell stated Thursday that the loan program “desperately needs to be renewed,” Congress remains split on how to go about doing so. Conversely, Treasury Secretary Mnuchin said earlier in the week that he feels interested in the program has long since run its course: “That money we want to repurpose for other issues.”
Whether there will be a second round of loans remains in the air as Congress debates over the next steps to take for Covid-19 relief. For those looking to apply for a loan, the Treasury Department has provided answers to commonly asked questions regarding the PPP loan process.
While the deadline to apply for the loan is approaching, work is ramping up for accountants as businesses begin applying for forgiveness for their loans. PPP borrowers can apply for loan forgiveness at any point, but after 10 months of the covered period, they will be required to start paying interest. The American Institute of CPAs is looking to implement an online tool to expedite the loan forgiveness application process for both borrowers and accountants.
Sincerely,
Devin McQuillan
Associate, Creative Solutions
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516-541-6549 | Email