DC Tax Flash: Senate Approves PPP Deadline Extension

Tax Alert

The Senate last night approved legislation (S. 4116) that would extend the deadline for loans under the Paycheck Protection Program (PPP), which offers certain small businesses forgivable loans to cover payroll costs. The bill, which passed by unanimous consent, would extend the program until August 8, 2020. The deadline to apply for a PPP loan passed yesterday.  

The Senate-passed bill now goes to the House for potential consideration. 

More than $130 billion in federal funding earmarked for the PPP program remains available. At a hearing yesterday, Treasury Secretary Steve Mnuchin said he supports shifting those funds "to businesses that are most hard-hit, that have requirements that their revenue have dropped significantly, things like restaurants and hotels and others where it is critical to get people back to work." He said that Treasury is already consulting with the Senate Small Business Committee "about repurposing that $135 billion...and looks forward to working with both the House and the Senate so we can pass legislation by the end of July."

The text of S. 4116 is posted here.

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