PPP borrowing extended through Aug. 8, 2020/borrower info released
Congress extends PPP timeline for approved applications through Aug. 8, 2020; SBA releases data set of borrower information.
The Paycheck Protection Program has had another busy week. Originally, the program was scheduled to stop approving applications as of June 30, 2020, even though it had just over $130 billion remaining. In a midnight hour vote, the Senate authorized loan approvals funding for another five weeks until Aug. 8, 2020. The House quickly agreed and President Trump signed to make the extension law.
As states continue to have a stop-start-stop stutter step approach to adjusting social distancing and covid-19 protocols, it may now be time for some of the small businesses that were sitting on the fence to jump into the program. Congress and the SBA have consistently tweaked and interpreted the program rules in a borrower favorable manner and the 24-week covered period along with the 60% payroll requirement could assist many new borrowers in staying afloat.
As of June 30, the program had issued over 4.8 million loans totaling $521 billion. This leaves just over $131 billion remaining for new borrowers.
Secondly, and widely-reported, the SBA released the borrower data sets on Monday, July 6, 2020. The data sets are separated between loans under $150,000 and loans $150,000 and over and the SBA discloses the following information for each loan:
- Loan amount
- Borrower City, State, Zip
- Borrower NAICS code
- Borrower business type
- Borrower jobs retained
- Date of approval
- Congressional district
For loans $150,000 and over, the borrower name is also provided and the loan amount is provided as a range. For loans less than $150,000, the specific amount of the loan is provided.
Contact your CPA at Ricci & Company for more information. © 2020