On Tuesday, President Biden signed an extension of the Paycheck Protection Program, after legislation authorizing applications through May 31 was passed by a large, bipartisan majority in both chambers of Congress earlier this month. The program still has billions of dollars in authorized funding remaining, including an additional $7.5 billion that was authorized as part of the American Rescue Plan.
Under the extension, the Small Business Administration and approved 7(a) Lenders can process applications through June 30. Previously, the PPP application window had been set to close today.
Under the current terms of the program, which were not changed by this extension, a minimum of 60 percent of the forgivable loan amount must be spent on payroll costs, including employee benefits. The other 40 percent can be spent on other business expenses like rent and utilities. WANADA will continue updating its members with additional guidance from the SBA or the Treasury Department if and when it is published.
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