Paycheck Protection Program Extended
The Paycheck Protection Program (PPP) has officially reopened following a last-minute extension on July 1, hours after the deadline for applications lapsed. The PPP resumed accepting applications on July 6, 2020 at 9:00am EDT with a new August 8, 2020 deadline for approval by the Small Business Administration (SBA). With $134.5 billion in PPP funds still available, the extension gives Congress additional time debate modifications to the program as well as additional initiatives to support businesses still struggling with impacts of the pandemic in the next COVID-19 stimulus bill, expected by the end of July.
The extension of the program, came as members of both parties in Congress were demanding data on how the PPP funds were used. While Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza initially refused to release the data, after weeks of negotiation, the Trump administration released information on the almost 4.9 million loans provided through the program on July 6, 2020. The data released does not provide full details on any loans, with the names of companies borrowing less than $150,000 withheld and the exact loan amounts for larger borrows withheld. Those loans above $150,000 have name, address and other details but only provide a range for the loan amount received, such as $5 million to $10 million.
While the Trump administration initially refused to release the data on privacy grounds, it is not an unexpected outcome. SBA traditionally releases information on loan recipients and borrowers were provided with a notification on their initial PPP application that certain information regarding their loan would be made public by the SBA.