ROCKFORD – The federal government has extended the application deadline for the Paycheck Protection Program (PPP). State Senator Steve Stadelman (D-Rockford) is encouraging local business owners to apply for the PPP and other forgivable loans through the Small Business Administration.

“Businesses across Illinois, especially small businesses, continue to need immediate support in order to survive this economic downturn and keep employees on their payroll,” Stadelman said. “I encourage any small businesses owner in need to apply for this program. Any funds spent on preserving our work force now will save us all money in the future.”

To help provide financial support to businesses, the Federal Treasury Department and the U.S. Small Business Administration extended the application period for the Paycheck Protection Program. Businesses can get up to $10 million in relief funding through the first come, first served program. Under the extended deadline, businesses must apply by Aug. 8.

The financial lifeline helps employers keep people on the payroll and pay overhead expenses. If used as intended, the loans don’t have to be repaid.

More than 27,000 Illinois businesses have already taken advantage of the loans – saving an estimated 1.36 million jobs – according to the Small Business Administration.

PPP loans have an interest rate of 1% and can be fully forgiven if they are used for payroll costs, rent, utilities or interest on mortgages.

To find participating lenders, business owners and managers can visit the Small Business Administration’s website, found here.