The Consolidated Appropriations Act signed into law by President Trump recently extended the terms and eligibility criteria for the PPP Loan program. Under the new law, a borrower must have been denied a loan under the PPP program prior to receiving the loan if they applied for a loan under this program after the original loan had closed.

This was the case for some of the loans made in the original round of the PPP program. Therefore, they were ineligible to be refunded under the original provisions of the law. In addition, under the new law, eligible borrowers who were denied a loan apply for Employee Retention Credit must also have made at least $250,000 in qualifying purchases from certain covered small businesses.

These are the new requirements that are being imposed on the PPP Loan Program:

The loan period has been extended to October 15, 2020. This means that any loans that have been funded since April 30, 2020 will be able to remain open until October 15, 2020. After October 15, 2020, any loans that were funded on or after October 15, 2019 will no longer be able to be claimed as a tax credit.