‘Paycheck Protection Program’ Applications Extended until Aug. 8
authors Patrick O'Toole | July 2, 2020
President Trump today is expected to sign new legislation passed by the House and Senate this week to extend the Paycheck Protection Program by five weeks. The program officially ended at midnight on June 30 with $129 billion in funds remaining. Those funds are earmarked for small businesses around the country, including residential remodelers and home improvement companies.
The program, which was unveiled in April, has facilitated 4.9 million loans with a total value of $520 billion. Initially those funds were intended to cover payroll, rent and utilities for an eight week period, but in early June the Paycheck Protection Flexibility Act extended the loan forgiveness period to 24 weeks and lowered the percentage of fund that must go toward payroll from 75 percent to 60 percent of forgivable expenditures.
Attorney D.S. Berenson, managing director, of Berenson LLP, has been providing analysis and compliance information to Qualified Remodeler about the giant CARES Act of with the Paycheck Protection Program is a part. His initial analysis of how to comply with the law can be found here.
Treasury to Publish List of Recipients
In order to provide greater transparency on the use of the funds, the Treasury department confirmed this week that all recipients of Paycheck Protection Loans in excess of $150,000 would soon be published online.
In a joint release with the Treasury department, the Small Business Administration said it would publish the following information about the recipients—the business names, addresses, related NAICS codes, zip codes, business type, demographic data, not-for-profit information, jobs supported, and loan amount ranges.
Those ranges are:
- $150,000 to $350,000
- $350,000 to $1 million
- $1 million to $2 million
- $2 million to $5 million
- $5 million to $10 million
For loans below $150,000, the SBA will release totals aggregated by zip code, by industry, by business type, and by various demographic categories.
“I am pleased that we have been able to reach a bipartisan agreement on disclosure which will strike the appropriate balance of providing public transparency, while protecting the payroll and personal income information of small businesses, sole proprietors, and independent contractors,” said Secretary Steven T. Mnuchin in a statement.
The Treasury department’s website offers many resources for those seeking to apply for a forgivable loan under the program. In particular there is a “Frequently Asked Questions” document that is very comprehensive.
Another point of interest is a summary of how the funds are being deployed. It details the number and value of loan amounts distributed to date by state and industry. As of June 27, the construction sector—residential, commercial and industrial—was the third highest loans and totals. There have been 458,166 loans with a value of $64.3 billion, representing 12.39 percent of the total funds distributed. QR