PPP loan application deadline set for June 30
June 29, 2020
•Land Line Staff
The deadline to apply for a loan through the Paycheck Protection Program is June 30.
Bryce Mongeon, OOIDA’s director of legislative affairs, told Land Line Now that there was still about $130 billion left in the program.
In April, President Donald Trump signed into law a bill that included $321 billion of additional funding for the Paycheck Protection Program. The first installment of the program, which was created in response to the economic woes caused by the COVID-19 pandemic, ran out of funds in mid-April.
Mongeon said it is unclear if Congress will take steps to renew or reauthorize the program.
The program has received some criticism, including a report from the U.S. Government Accountability Office that was issued last week. Among the problems raised in the report was that the Small Business Administration wasn’t ready to address fraud risks within the program.
Earlier this month, Congress passed a bill aimed at providing more flexibility for businesses using Paycheck Protection Program loans.
Flexibility would be provided by lowering the amount of the PPP loan that must be used on payroll from 75% to 60%, by increasing the period businesses have to use the loan from eight weeks to 24, by expanding the two-year loan maturity to five years for new loans, and by allowing for businesses receiving a loan to take advantage of the employer payroll tax deferment.
The payroll percentage change is intended to allow businesses to use more of their loan to cover rent and utilities while still qualifying for loan forgiveness. Existing loans will not be affected by the increase of loan maturity to five years, but lenders and borrowers can renegotiate.
OOIDA said the bill was a step in the right direction and that the Association will continue to push for legislation that will specifically help small-business truckers.
“We are pleased that Congress has provided some PPP flexibility for small-business truckers,” Mongeon said in early June. “This legislation includes some of the changes that we have been asking for since problems with the program became apparent, like allowing for more of the loan to be used for non-payroll expenses. With that said, we will continue to work with Congress to get more targeted economic relief to meet the unique needs of truckers.”
Land Line Now’s Terry Scruton contributed to this report.