By SEMA Washington, D.C., Staff
President Biden signed into law a SEMA-supported bill passed by Congress to extend the Paycheck Protection Program (PPP). The deadline for filing PPP applications has been extended from March 31 to May 31, and the U.S. Small Business Administration (SBA) has until June 30, 2021, to process applications. Significant PPP funds remain available for loans that are potentially forgivable.
PPP loans are government funds provided through banks and other lending institutions. Loan amounts generally equal the average of one month’s payroll multiplied by 2.5. The maximum amount for a first loan is $10 million. The maximum amount for a second loan is $2 million (and $10 million for a combined first and second loan). PPP funds can be used to cover payroll, mortgage interest, rent, utilities and other costs. Loans are fully forgivable if at least 60% of loan proceeds are used on payroll costs (i.e., wages, payroll taxes, paid leave, healthcare payments, retirement and insurance contributions).
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