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Paycheck Protection Program Application Deadline Extended to August 8

On July 3, 2020, the Paycheck Protection Program Extension Act extended the deadline to apply for the Paycheck Protection Program (PPP) to August 8, 2020. This means your organization still has time to apply!

The CARES Act created PPP which allows nonprofits with under 500 employees to receive low-interest business continuity loans that can be forgiven – essentially transforming them into a grant – if your organization (1) uses the loans for qualified expenses and (2) maintains your staff and compensation levels for a specified period of time after receiving the loan. PPP provides a one-time payment worth 250 percent of your average monthly payroll expenses over the last year. In order to qualify for loan forgiveness, PPP money should primarily be used to cover ongoing payroll costs.

Following the CARES Act, the PPP Flexibility Act and the PPP Extension Act made several changes to PPP. Read our legal alert, Updates to the Paycheck Protection Program, for the latest information on PPP. Also, Start Small Think Big and the law firm Cleary Gottlieb are offering a free webinar on July 15 on PPP Updates.

If your nonprofit needs help understanding PPP or other COVID-19 financial relief options available, you can speak one-on-one with an attorney for free through the D.C. Bar Pro Bono Center's Free Financial Relief Brief Advice.

For more information on other legal topics related to COVID-19, visit the D.C. Bar Pro Bono Center's COVID-19 Legal Resources for Nonprofits & Small Businesses website.