The PPP Loan Deadline Gets a Last-Minute Extension with $130 Billion Still Unclaimed
Though the U.S. economy as a whole got hammered once COVID-19 invaded domestically, small businesses really bore the brunt of the financial hit. Earlier this year, countless local establishments were forced to close their doors when stay-at-home orders were put into place and a massive countrywide lockdown began.
Thankfully, lawmakers realized that small businesses would need relief in order to avoid closing down for good, and with that, the Paycheck Protection Program was born in late March, just weeks after the pandemic first hit home. Under the PPP, businesses with fewer than 500 employees were allowed to apply for loans that were capped at two-and-a-half times their monthly payroll costs. The point of the PPP was to help businesses retain staff, or rehire staff members who were laid off early on in the pandemic.
The best part about the PPP? Its loans were potentially totally forgivable for businesses that used at least 60% of their proceeds to cover payroll expenses. And while businesses were initially given just a short eight-week window to spend their PPP funds, that was eventually extended to 24 weeks to give those businesses more flexibility.
Source Fool.com
