According to the U.S. Small Business Administration, lenders across Georgia have helped more than 152,000 small businesses receive loans totaling more than $14.3 billion through the Paycheck Protection Program (PPP), and more help is on the way.
With over $100 billion uncommitted for loans, Congress voted today to extend the PPP loan application process through August 8th, with President Donald Trump expected to sign the extension within the next couple days.
The Georgia Bankers Association has acted as a key link between small businesses and Georgia bankers, who have had to navigate the complex forgiveness process and the variety of forms, applications, and extensions that accompanies the PPP.
“Georgia bankers dropped everything to get that money into the hands of small business owners to save jobs and help keep their businesses afloat. That was an enormous task to get done in less than 90 days, but the bankers made it work during a public health emergency and with little guidance on the program. We hope most of those loans will qualify for forgiveness so these hardworking neighbors and friends can focus on their businesses. They are the backbones of our communities,” said GBA president and CEO Joe Brannen.
Congress recently passed other legislation that extended the time to spend loan proceeds from eight to 24 weeks. The new law also allowed small businesses to spend up to 40 percent of the proceeds on eligible non-payroll expenses to qualify for forgiveness.
While that legislation will be helpful to some, it was enacted after most borrowers had already used their loan proceeds based on the law in effect at the time. Most will likely choose to use the 8-week period in applying for forgiveness to put this program behind them.
