Editor’s note: On July 4, the president signed this legislation into law.
Congress has unanimously approved legislation to extend the Paycheck Protection Program (PPP) application deadline to August 8, 2020.
Once signed by the president, this will provide more time for veterinary practices and other prospective borrowers to apply for the roughly $132 billion still available in the forgivable loan program. The deadline previously had been June 30. The bill is expected to be signed into law by the president quickly.
The U.S. Small Business Administration (SBA), which oversees the program, is expected to announce new rules for PPP in light of the extension. Because lawmakers are having ongoing discussions about the PPP and loan forgiveness criteria, retroactive changes by Congress are still a possibility. Veterinarians may want to consider deferring repayment and applying for forgiveness at a later date. We encourage you to review the forgiveness application and consult with your tax or business advisor to decide your best course of action.
This latest legislation likely won’t be the last change made to the PPP, which was created in April as part of the government’s COVID-19 stimulus legislation. Lawmakers have signaled they will continue working on the program. Potential changes could include the following:
- Addressing a prohibition on tax deductions for forgivable expenses
- Implementing a blanket forgiveness for loans under a certain amount
- Authorizing more funding in the next COVID-19 stimulus bill
For more details on PPP eligibility and how to apply, visit the small business loans page of AVMA’s COVID-19 resource center. To stay up-to-date on this program and other important information about COVID-19, subscribe to this blog and follow AVMA on social media.