The Paycheck Protection Program (PPP), which was established in Section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), is set to be extended by five weeks after the U.S. House of Representatives (House) joined the Senate in passing a bill (S.4116) to extend the authority for commitments for the PPP by unanimous consent on July 1, 2020. The House’s approval came just one day after the Senate passed the same measure (S.4116) on June 30, 2020. The Small Business Administration’s (SBA) authority to guarantee PPP loans was originally set to expire on June 30, 2020. The bill will still need to be signed into law by the President before taking effect.

The SBA, which is the administrator for the PPP along with the U.S. Department of the Treasury, stopped accepting loan applications at midnight on June 30, 2020. The extension passed by Congress would extend the PPP application period until August 8, 2020. The extension is intended to provide additional time for small businesses to apply for the approximately $129 billion in remaining PPP funding.

A Preview for Changes to the PPP

Lawmakers are already in discussions for Phase 4 about how to revise the PPP to make it more accessible to smaller companies and those most in need, like businesses in the travel and restaurant industries. We would expect that Congress will take up these new measures after their break through July 20th but before they adjourn in August.