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July 2, 2020

House clears Senate bill allowing Paycheck Protection Program to accept applications until August 8

Measure passes by unanimous consent; bill awaits president's signature

The House on Wednesday, July 1, 2020, cleared for the president's signature a bill (S. 4116) that would extend until August 8 the deadline for accepting loan applications for the Paycheck Protection Program. The PPP is an emergency lending program that is managed by the U.S. Small Business Administration (SBA) and was established by Title IV of the CARES Act. As the Senate had done Tuesday night, the House passed the bill by unanimous consent, meaning no members objected when consent was requested to pass the bill without a recorded vote. The Paycheck Protection Program's current application deadline expired at midnight Tuesday night (June 30).

The extension bill is sponsored by Sen. Benjamin Cardin (D-MD), ranking member on the Senate Small Business & Entrepreneurship Committee. The legislative text of S. 4116 is attached to this Alert.

S. 4116 also would maintain a separate lending total for the SBA's 7(a) small-business lending program, which was set at $30 billion under a fiscal 2020 appropriations bill enacted in December. That change allows the 7(a) program to continue if PPP funds are exhausted. As of June 30, the PPP had more than $130 billion in funds available for loans.

In Senate floor remarks, Cardin said the bill "would change the deadline for filing for a PPP loan from June 30 to August 8. We picked August 8 because that's the end of the next work period ... The small businesses that have used up their PPP money and need additional help are not going to get our attention until we come back July 20 ... The last day that we anticipate the end of the next work period, we will have time to work together, act together, and hopefully pass additional bipartisan help for small businesses in this country."

Work continues on other PPP bills that would reauthorize the program for a longer term while refocusing it on smaller or especially troubled companies, though action on a bill isn't considered likely until the end of July. (The House and Senate are departing for a two-week recess on July 3, though the House will remain in session for committee hearings and markups.) Senate Small Business Chairman Marco Rubio (R-FL) is drafting a bill that would allow chambers of commerce to apply for PPP loans, set aside funds for businesses with fewer than 10 employees, and require applicants to provide more information on losses resulting from the pandemic. Sen. Cardin has also introduced a bill that would provide a second round of PPP loans to small businesses with 100 or fewer employees that can show they lost at least 50 percent of their revenue due to COVID-19. Cardin's bill would also prohibit publicly traded companies from accessing PPP loans; limit loans for food and hotel chains; and set aside funds for businesses with 10 or fewer employees, as well as companies operating in underserved and rural communities.


Contact Information
For additional information concerning this Alert, please contact:
Washington Council Ernst & Young
   • Will Heyniger, 202-294-7474 (
   • Bob Schellhas, 202-294-7474 (


Full text of S. 4116