PPP Lending Deadline Extended and Other Important Updates

July 7, 2020

The Paycheck Protection Program (PPP) lending deadline has been officially extended from June 30 to August 8, 2020, and authorized limits for PPP commitments have been separated from other Small Business Administration (SBA) loan programs (The White House, 2020).

The May 19 interim final rule that precludes additional disbursements once a Form 1502 has been filed by the lender persists. This has kept many camps from being able to request additional funds following the April 30 PPP rule modification that allows summer seasonal businesses to use a more favorable calendar period to determine their maximum loan amount. American Camp Association research shows more than 90 percent of camps that have attempted to amend their original loan amounts have been denied because of the current Form 1502 clause.

You Can Help

Congressman Kevin Hern of Oklahoma is requesting a PPP rule change to permit a single increase loan modification for seasonal employers whose loans have been previously reported by a lender on SBA Form 1502 and continued eligibility for an SBA guarantee for that additional amount.

Contact your US House representative and ask them to co-sign Congressman Hern’s letter to the SBA.

Additional Updates

The Paycheck Protection Small Business Forgiveness Act has passed the House. If signed into law, the act would automatically forgive PPP loans of $150,000 or less provided the loan recipients have met the other requirements of the PPP loan (Walker, 2020), including spending at least 60 percent of loan money on payroll during the allotted time period (24 weeks from time of loan).

For more information, visit the SBA’s Paycheck Protection Program information page.