The Senate has approved $320 billion in additional funding for the Paycheck Protection Program, the Small Business Administration’s business relief program that passed as part of the CARES Act on March 27, 2020.
The PPP originally received $349 billion in funding to support businesses hurt by the COVID-19 pandemic. Funding quickly ran out however, as a surge in applications for relief and skyrocketing unemployment numbers reflected the significant need.
The House of Representatives is expected to pass the legislation on Thursday, and President Trump indicated that he will sign it into law. If you have not yet received approval for a PPP loan, you will need to re-apply once the law is enacted and the SBA begins receiving new applications.
PPP loans do not need to be paid back if businesses use the majority of the funding to support payroll expenses, as CBM has reported. We will continue to report on developments surrounding this additional round of PPP funding.
Please contact Richard Morris with any questions via our contact form.
Councilor, Buchanan & Mitchell (CBM) is a professional services firm delivering tax, accounting and business advisory expertise throughout the Mid-Atlantic region from offices in Bethesda, MD and Washington, DC.
