President Donald Trump signed legislation to extend the deadline of the Paycheck Protection Program for small businesses on Saturday.
The program was enacted when the coronavirus pandemic caused the economic shutdown in the United States.
Congress had created the program in March to help small businesses in keeping their employees on the payroll.
Paycheck Protection Program
The Paycheck Protection Program came into existence on March 27, 2020. The U.S. federal government had signed the CARES Act into law to support small businesses during the pandemic.
Paycheck Protection Programs comes under the CARES Act.
A total of $660 billion were allocated for this program. Starting from the loan origination date, this loan will cover expenses for 24 weeks.
All the small businesses are available for this program and it requires no collateral or personal guarantees.
Even though the original deadline to apply for the loans was this Tuesday, the deadline has now been extended.
After President Trump signed the extension for the program on Saturday, small businesses can apply for the same until August 8.
Out of the $660 billion, $130 billion still remained in the fund. Following this, the house lawmakers passed the extension unanimously.
About 5 million small businesses have benefitted almost $520 billion worth of loan from this program.