Not even 24 hours before the Paycheck Protection Program (PPP), whose loans go to businesses with fewer than 500 employees, was supposed to expire, the Senate cleared legislation to extend the deadlines for businesses to apply. After a unanimous decision, the deadline for applying for PPP loans would be extended until August 8th. As of June 30th, there is still $130 billion in unspent money under the program, which is prompting a discussion among lawmakers about what to do with these funds.
Although the decision for the extension was unanimous, there are varying opinions on the extent to which this extension will help. Senator Ben Cardin believes that “the need” is still there, while Senator Marco Rubio, the chairman of the Small Business Committee, although having no objections to the extension, believes “‘the vast majority of #SmallBusiness that wanted to benefit from the program have already used it.'” Senator Rick Scott even tried to change the bill to include a requirement that any new loans would have to go to businesses that have seen a downturn in revenue due to the coronavirus; however, Cardin rejected the change, noting that while he agreed with Scott’s concerns, he did not want to change the guidelines mid program.
The lesson to be learned? If you are a small business and thought your time ran out, they just added 39 days to the clock.
Carney, J. (2020, July 01). Senate passes extension of application deadline for PPP small-business loans. Retrieved July 02, 2020, from https://thehill.com/homenews/