On June 30, 2020, the Senate passed an extension of the Paycheck Protection Program (PPP) to keep the program operating until August 8, 2020. On July 1, 2020, the House also approved the extension for the program which was set to end on June 30. The President is expected to sign the extension shortly.
The extension permits eligible businesses to continue to apply for PPP loans through August 8, 2020, but does not permit existing PPP borrowers to apply for new loans or increase their borrowings under existing loans.
This action will allow the Senate to continue working on legislation to make further changes to the PPP to provide additional relief to businesses still struggling as a result of the pandemic. The Senate is expected to consider such legislation when it resumes session after the July Fourth holiday on a fourth coronavirus relief package to be reconciled with the House-passed HEROES Act. The HEROES Act makes changes to the PPP to improve the loan terms and expand the list of eligible borrowers.
Please contact Alexis Schostak (248-203-0598), Tom Vaughn (313-568-6524), Mary Beth McGowan (202-906-8631, Government Policy Advisor) or your regular Dykema attorney with any questions.
Stay ahead of emerging issues with Dykema's Coronavirus (COVID-19) Resource Center and subscribe to all relevant publications so you can easily leverage information, stay up to date on evolving developments, and better position yourself for success.
As part of our service to you, we regularly compile short reports on new and interesting developments and the issues the developments raise. Please recognize that these reports do not constitute legal advice and that we do not attempt to cover all such developments. Rules of certain state supreme courts may consider this advertising and require us to advise you of such designation. Your comments are always welcome. © 2020 Dykema Gossett PLLC.