The U.S. House of Representatives has passed a bill to extend the deadline for businesses to try to get forgivable loan aid through the Paycheck Protection Program (PPP), CNBC reported.
The new legislation will extend the deadline to apply for forgivable loans to Aug. 8 from its previous date of June 30.
The measure was passed unanimously. Now, it heads to the desk of President Mr . trump for a signature.
The PPP, passed in March as part of the $2 trillion CARES Act, was the very first wide-spanning action to help aid small- to medium-sized businesses (SMBs) following the pandemic hit, letting them make an application for loans that could become grants when the money was utilized in a certain amount of your time.
The Trump administration continues to have $130 billion in loans to give out of the PPP.
Congress' initial $349 billion injection in to the PPP was expended within weeks, attracting controversy over the proven fact that many large, publicly-traded companies were successfully in a position to request large amounts of loans for themselves despite not needing it.
Then, after the initial money was depleted, Congress added another $310 billion in April. Of that, $60 billion was set aside for small lenders to assist using the issue of companies without any bank relationships that were having trouble getting loans.
Sen. Marco Rubio of Florida tweeted (June 30) he wanted to see more helpful aid in the near future, rather than extensions of a program most had already used.
\”I have no objection to extending the #PPP deadline until August 8th,\” he wrote. \”But the vast majority of #SmallBusiness that desired to benefit from the program have already used it. What we really should pass very soon is targeted help for individuals who need a second round of aid.\”
The PPP hasn't turned out to be an instant fix. PYMNTS reported on a NFIB Research Center survey stating that 14 percent of recipients predicted they'd still have to laid off workers after using the money.
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