Trump Signs PPP Extension Bill—Giving Small Businesses Another 5 Weeks

TOPLINE

President Trump Saturday signed into law a bill extending the Paycheck Protection Program—an emergency federal loan facility for small businesses struggling because of the pandemic—for another five weeks until August 8, buying Congress time to figure out what the next round of aid for small businesses will look like when it reconvenes later this month to hash out more stimulus legislation. 

KEY FACTS

Big number

4.8 million. As of June 27, that’s how many PPP loans had been approved. All in, those loans were worth nearly $520 billion.

Key background

The PPP was created as part of the $2.2 trillion CARES Act, signed into law by President Trump at the end of March. The $350 billion program provided forgivable loans to cover payroll and overhead expenses for cash-strapped businesses to keep them from folding during the worst of the economic slowdown. After an initial crush of applications and a chaotic rollout period, the PPP ran out of money in just two weeks, prompting Congress to pass more legislation to re-up the facility with another $310 billion. 

Further reading

Here’s When We’ll Know Whether CARES Act Provisions—Including A Stimulus Check—Will Be Renewed (Forbes)

GOP Suddenly Expresses Urgency On Stimulus: ‘Congress Needs To Act In July’ (Forbes)

It’s Official: Trump Wants A Second Round Of Stimulus Checks In ‘Larger Numbers’ Than Democrats (Forbes)

CARES Act Protections—Including $600 Unemployment Benefits—Expire Next Month. Here’s What Needs To Happen To Avoid More Economic Devastation. (Forbes)