Senate agrees to extend PPP loan program through early August
The PPP provides forgivable loans to small businesses with a payroll of up to 10 weeks, mainly used to pay workers and some other fixed costs. If the companies follow the program’s guidelines, their debts will be forgiven. Money that is used for other purposes turns into low-interest loans with a five-year maturity.
However, in recent weeks, applications for the program have decreased and the loan amount available has increased as some borrowers have returned or prepaid their loans. The passage of a bill to relax the requirements of the program and extend the deadline for the issuance of the yieldable loans did little to increase demand for SBA funds. It is unclear whether many small businesses would use a later deadline.
FiscalNote, the parent company of CQ Roll Call, has received a loan under the Paycheck Protection Program.
Small Business chairman Marco Rubio, an architect on the program, said he wanted to reuse the unclaimed funds to help the hardest-hit small businesses. This idea, which Treasury Secretary Steven Mnuchin endorsed, would allow companies with particularly bad sales drops to apply for additional forgivable loans that convert the portions not used for payroll into long-term, low-interest loans.