Evan Vucci / AP
President Trump signed a law on Saturday to extend the deadline for applying for the small business paycheck protection program, which was enacted in the weeks following the economic stagnation caused by the coronavirus pandemic.
The original deadline for applying for the PPP was last Tuesday evening. However, of the $ 660 billion allocated, $ 130 billion remained in the fund. Both congress houses unanimously approved the extension earlier this week. With Trump’s signature on Saturday, companies now have until August 8 to apply for support.
The PPP gives companies direct government subsidies for payroll, rent, and other costs. The subsidies come as federal loans, but these loans can be granted if companies use at least 60% of the funds for payroll.
The program has so far provided approximately $ 520 billion in loans to nearly 5 million small businesses across the country. The loan should help companies cover about two and a half months of typical costs.
Program sponsors say they want to reuse the program to better meet the challenges that businesses are facing now, a few months after the pandemic. “As the amount of financial damage small businesses suffer from the pandemic and resulting lockouts has increased, it has become clear that longer-term support is needed,” Florida Senator Marco Rubio said in a statement.
Rubio said he wanted additional support for “our smallest businesses, especially in our underserved communities”. The program was criticized after lending to multimillion-dollar companies like Potbelly, coal company Hallador Energy and video storage company Quantum, all of which received $ 10 million, most of which the PPP will give to a company.