PPP2 Application Deadline Extended
The U.S. Senate approved a two-month extension of a popular U.S. small-business relief program that still has about $79 billion left to distribute, giving companies until the end of May to apply for the forgivable loans.
The Senate passed the bill on a 92-7 vote, extending the program two more months from its current expiration date of March 31. The House passed the bill earlier this month and it will now go to President Joe Biden for his signature.
The second round of PPP lending opened up in January after Congress approved more funding in December. Lawmakers then added $7.25 billion more in the latest $1.9 trillion stimulus bill, which the President signed earlier this month. That law also expanded eligibility for some nonprofit groups and online publishers.
This month’s package also includes a $28.6 billion grant program specifically for restaurants. Restaurants that have received PPP money can also tap the fund if they can demonstrate enough revenue loss. The Small Business Administration has not yet announced how it will distribute those grants. This is significant for alarm companies as it may give restaurants needed cash for fire alarm repair and upgrades.
The latest PPP round allows some businesses to apply for a second loan if they used up their first one, met requirements regarding the number of employees and could demonstrate a decline in revenue.
Mitch Reitman is the Managing Principal of Reitman Consulting Group and can be reached at MReitman@Reitman.US