By Michelle Price
UCBJ Managing Editor
WASHINGTON – The landmark Paycheck Protection Program (PPP) is rapidly nearing the June 30 deadline to apply. There is still over $140 million available for businesses needing funding to pay salaries, utilities and other expenses to keep businesses open and people employed during the COVID-19 pandemic.
The Small Business Administration (SBA) began accepting PPP applications for the second round of funding from participating lenders on Monday, April 27, 2020 at 10:30 a.m. EDT.
The SBA reports that as of 5 p.m. on June 16, a total of 4,607,098 loans had been approved totaling $513,046,529,867. The average loan is $111,360.
On June 5, President Trump signed the Paycheck Protection Program Flexibility Act of 2020, which made significant changes to the PPP program making it easier for businesses to take advantage of the program.
The revised PPP gives business 24 weeks instead of the original eight weeks to spend the funds and qualify for forgiveness. Loans originating after June 5 that fail to qualify for forgiveness will be subject to a five-year payback instead of the two-year payback on earlier loans.
The rule that business owners who have a felony convictions within the past five years are prohibited for eligibility has been changed and the prohibition is only one year, except in the case that five years still applies if the charges were for fraud, robbery, embezzlement or a false statement in a loan application or an application for federal financial assistance.
An SBA COVID-19 informational meeting on the Paycheck Protection Program and the Economic Injury Disaster Loan (EIDL) will be held on Friday, June 19 from 2-3:30 p.m. CST.
To join the webinar, click here.
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