Will the Paycheck Protection Program Get Extended?
The Paycheck Protection Program expired on June 30, 2020. The program expired with almost $130 billion unused. The question came up - What is to come of that money? We may have the answer. In a total surprise move, the US Senate by unanimous consent passed a five-week extension of the PPP just before the application window to the program expired. The House of Representatives needs to pass the measure and President Trump would have to sign it for the extension to take effect. Congress is slated for a two-week recess at the end of the week. Right now, it is unsure if this will get done before the extension.
Loan applications for the program ended at midnight on June 30 but if this gets approved and signed into law, the program will be extended until August 8.
PPP Statistics: Through June 30, the PPP approved 4,856,647 loans totaling just under $561 billion with an average loan size of just over $107 thousand through 5,459 different lenders.
PPP Loan Overview: This successful program created by Congress is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. The legislation authorized the Treasury Department to use the SBA’s small business lending program to fund forgivable loans of up to $10 million per borrower allowing qualifying businesses to cover payroll, mortgage interest, rent, and utilities. The loans are available to small businesses that were in operation on February 15 with 500 or fewer employees, including not-for-profits, veterans’ organizations, Tribal concerns, self-employed individuals, sole proprietorships, and independent contractors. Businesses with more than 500 employees in certain industries also can apply for loans. The key component of the program is the ability to get the loan forgiven. The forgiven rules were modified on June 5 with the Paycheck Protection Program Flexibility Act of 2020. Please see my update “Coronavirus and Taxes Part 10” dated June 9 for more details (https://hunter-consulting.com/blog/).
Tax Returns: Lastly, in trying to keep in compliance with social distancing guidelines, I am now offering to pick up your tax documents and discuss your tax situation either over the phone or via Zoom or Skype. The tax filing date is July 15 (automatic extension can take you out to October 15). You can scan your documents into a PDF and email to me at HunterTaxConsulting@gmail.com. Also, they can be mailed to my P O Box.
As more information becomes known I will keep everyone informed. Feel free to reach out to me to discuss your situation. Be safe everyone.
Harry E. Hunter
Hunter Consulting, Inc.
July 1, 2020