PPP Loan Application Deadline Extended to August 8

The application deadline for small business loans from the Paycheck Protection Program passed on Tuesday, leaving the SBA with a $130 billion surplus in unallocated funding. On Wednesday, The U.S. House of Representatives voted unanimously to extend the program until August 8, giving small businesses an additional five weeks to apply for funding.

Legislators also passed a bill to adjust key provisions of the stimulus package, which was introduced in March to stave off the worst economic effects of the coronavirus pandemic. The new bill reduces the amount of funds businesses are required to spend on payroll and extends the amount of time they have to spend their loan.

That the program’s original deadline passed with $130 billion still unspent may suggest that access to PPP loans is not the primary challenge facing small businesses as the coronavirus crises continues. On Tuesday, Senator Marco Rubio tweeted that "the vast majority" of small businesses in need of a PPP loan "have already used it. What we really need to pass very soon is targeted help for those who need a second round of aid."

To that end, Congress is considering whether to pass another, separate coronavirus relief package later this month.