WASHINGTON – Thousands of small businesses scrambling to stay afloat as a result of COVID-19 are getting extra time to apply for low-interest loans.Paycheck Protection Program
President Joe Biden visits W.S. Jenks & Son, a hardware store that has benefited from a Paycheck Protection Program loan, in Washington, D.C., on March 9., said it's crucial the program be extended given recent eligibility changes and the large number of first-time applicants still seeking help, including the self-employed.
The PPP was created as part of the CARES Act that Congress approved in March 2020. It offered firms employing 500 or fewer workers low-interest loans of up to $10 million to cover their pandemic-related costs. Companies apply for the money through banks and other lenders that certify the loans, which are underwritten by the SBA.The program been updated in recent months to target very small businesses and non-profits and give applicants the chance to take out a second loan.
Thousands of firms improperly received loans because they already had received one or were barred from doing business with the federal government, a House committee concluded in a report released in September.