Washington–Both houses of Congress have voted to extend the deadline to apply for Paycheck Protection Program (PPP) loans to August 8. The measure now moves to President Trump for his signature.
The PPP program expired June 30, but it had $130 billion in unused funds. The program aims to forgive the loans if businesses vow to maintain their payrolls. All loan payments will be deferred for six months. Most importantly, the Small Business Administration (SBA) will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.
According to the National Lumber and Building Material Dealers Association, Senate Majority Leader Mitch McConnell (R-KY) told reporters that Congress will attempt to pass additional small business relief through a phase 4 stimulus bill between July 20 and Aug. 7 before leaving for a month-long recess.
Congressional approval to extend the PPP process came as the National Association of Home Builders (NAHB), the Home Builders Association of Michigan, and Home Builders Association of Southeast Michigan announced they have filed a lawsuit against the U.S. Treasury Department and SBA.
According to the NAHB, “onerous regulations” included in the PPP prevent some developers and builders from accessing the funding. It said the SBA has imposed a pre-existing regulation and guidance document that limits eligibility for certain businesses, including “passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds,” and “speculative businesses” that include “building homes for future sale.”