• The paycheck protection program application deadline was extended on Saturday after President Donald Trump signed the extension bill that Congress enacted.
• Potential applicants now have until August 8 to apply for federal relief funds under the program to help businesses affected by the coronavirus pandemic.
• About $ 130 billion in funds was left when the original deadline came on June 30, with some companies not knowing they are eligible for the program.
• Visit the Business Insider homepage for more stories.

President Donald Trump Saturday signed in law an amendment to the paycheck protection program that gives businesses affected by the coronavirus pandemic more time to apply for federal funds.

The law extends the deadline to apply for the federal government’s loan-based relief program until August 8. $ 660 billion prize pool, NPR reported.

The Senate first approved the extension Tuesday with unanimous consent, and the House of Representatives followed suit the next day. Trump signed the bill on July 4, giving potential beneficiaries just over a month to apply for the remaining funds.

As of June 30, more than 4.8 million loans had been approved for a total of $ 520 billion, with an average amount of about $ 107,000, according to the Small business management.

Here’s what potential applicants should know before applying.

What are Paycheck Protection Program Funds

Paycheck program funds are federally guaranteed loans that businesses can apply for to help cover expenses and maintain working levels. Although they start out as loans, companies that meet specific SBA criteria can apply for their loans to be canceled so that they do not need to be repaid.

Part of the program is that no fees will be attached to small business loans, no collateral is required, and repayment begins after six months. Interest rates are also set at 1%, depending on the SBA.

Who Can Apply for Paycheck Protection Program Funds

Although the program is aimed at small businesses, this title covers more than family hardware stores and ice cream shops. As Dominick Reuter of Business Insider reported, freelancers and self-employed workers, including concert workers, can also apply for funds.

Companies with more than 500 employees can also access funds if they meet the SBA’s size standards. Business owners who are unsure if their business counts as a small business can use the SBA’s Size Standards tool, located on their website.

What July and August applicants need to know

Loan applicants who complete the process after June 5 are subject to new loan maturity guidelines. The SBA said grantees who applied before June 5 will be subject to a two-year deadline while those who apply after June 5 will have a five-year deadline.

Loans are also processed by local banks and lenders to streamline the process rather than letting the federal government do it. The SBA provides a list of lenders who can process applications and issue PPP loans on its website.

How to get a loan forgiveness from the federal government

The SBAs website says the loan cancellation will be based on “employee retention criteria” and will only be granted if the funds are spent on “qualifying expenses”. The Payroll Protection Flexibility Act recently changed the rules of the program so that only 60% of funds received go to payroll expenses for loans to be canceled, such as Joseph Zeballos-Roig of Business Insider US reported.

Even if borrowers don’t use 60% of payroll, they can still ask for a partial discount. Companies looking for this option should complete a five-page form that can be found on the SBA website make a request for forgiveness after reviewing the forgiveness rules.