As the month of June ended, the U.S. Senate surprised most political observers by suddenly voting to extend the Paycheck Protection Program, reported the New York Times. All 100 Senators voted to approve the bill.
The move came as the PPP was scheduled to cease with $130 billion in Small Business Administration loan money still unclaimed. Many businesses thought better of applying following a rocky roll-out of the program in April, and concerns about loan terms and repayment due dates. The emergency funding program had already been adjusted to allow for a longer term and for business needs additional to covering payroll.
Applicants now have until August 8 to apply for loans. The House must pass the bill, and the President must sign it, but that is expected to happen before Congress closes for the Fourth of July holiday weekend.
In the meantime, some small businesses may find assistance with SBA lending partners who specialize in local community loans and grants. Check in your area for SBA partners to inquire about COVID-19 grant availability.
Finally, we heard from a local banking associate that how the CARES Act-funded PPP rolled out had much to do with what banks had to accomplish before they could help businesses to get loans. The government has not handed out cash ready to distribute—the banks are required to raise money to meet the loan demands, and the government will (at some time) reimburse the banks. That money-raising aspect of meeting the demand for PPP loans has not been written about much in the media. So be kind to your bankers. They have a lot on their plates, too.
As always, we are interested in how smaller ad agencies have fared in the first few months of this crisis. Please email or call us to share your learnings, thoughts, and concerns for what may still be coming in the way of business and economic impacts. We are here to assist you.
Find additional resources and links on our COVID-19 Help and Resources page.