Only hours before its deadline was set to expire, the Senate voted to extend the application period for the Paycheck Protection Program by five weeks, until August 8th.  With cases reaching record highs across the country, this is welcome news for struggling small businesses. If the House approves the change (which is expected to happen), then millions of small businesses around the country will have access to the remaining $130 billion in funds available. Lawmakers are also discussing prioritizing small businesses with the remaining funds. We’ve got all the news you need: check out our video and post below.

PPP Extension Desperately Needed

A recent Census Bureau survey found that 83% of small businesses have had moderate to large impacts on their businesses from COVID, and our own survey data shows that about 50% of the tens of thousands of business owners we have helped are in “survival mode” and just barely staying afloat.

Sen. Ben Cardin of Maryland, the senator from the Small Business Committee who pushed for the extension, said, "The resources are there, the need is there, we just need to change the date.”

Requirements around credit eligibility and forgiveness have kept some small business owners from applying for the program. Larger companies and those less impacted have received more of the funds; a recent University of Chicago working paper found that only 15% of businesses in the hardest-hit regions had received PPP loans, while 30% had in regions that were less impacted.

Small Businesses May Be Prioritized in the Next Round of Funding

With $130 billion remaining in PPP funds to be distributed, lawmakers and policymakers are eager to see small businesses get the help that they need during the extended application period. Treasury Secretary Mnuchin said at a Congressional hearing on Tuesday that the funds will go to those industries that are most hard-hit, including hotels and restaurants. With the service industry especially suffering, this is great news.

We’ll keep you updated on PPP news as it unfolds. In the meantime, you can see more of our business news here.