Payment Protection Plan extended hours before deadline, small businesses weigh in

The Payment Protection Plan that was set to end Tuesday night after being available for nearly 3 months has been extended to Aug. 8.

Posted: Jun 30, 2020 7:17 PM
Updated: Jul 1, 2020 11:27 AM

CHICO, Calif. -- The Payment Protection Plan that was set to end Tuesday night after being available for nearly 3 months has been extended to Aug. 8.

"I’m thankful the government is trying to do something but I believe we’re going to need more,” said Enzo Perri, owner of Celestino’s New York Pizza

His business received $84,000 from the Payment Protection Plan, but he doesn’t believe it’s enough for local businesses. Perri says Celestino’s saw a 50% decrease in sales, but is unsure if he wants to apply for another loan.

“There’s an uncertainty whether it’s going to be forgiven,” said Perri. “There’s some tax implications from what I understand maybe $20,000 of tax I will have to pay even if its forgiven, so it’s not a huge benefit for me other than retaining some of my key employees.”

Owner of Sin of Cortez Danielle Ius says she also needs more money, but is worried about loan forgiveness.

“When I applied for this loan the terms were ridiculous. The money I was able to get I would never be able to spend it so being the cautious person I am I only took half the amount of money,” said Ius.

Ius says her payroll was three times less before COVID-19 even hit. She says her sales dipped below 60% and is hoping to apply for the other half of her loan.

“I asked and they said ‘no it wasn’t an option’ but I may call today to see if anything like that has changed but I think basically once you go through the process you can’t go back and ask for more, is what they relayed to me,” said Ius.

Both businesses used the loan for payroll, utilities, and rent. As of now, there are still $130 billion of unused loans from PPP.

To sign up for the PPP, click HERE.

Editors Note: This article was written hours before the U.S. Senate made an announcement, right before the expiration of the small business loan PPP, that an extension was passed to extend the program to Aug. 8. Click here to read more on the extension.

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