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Paycheck Protection Program (PPP) Extended Through May 31, 2021

Paycheck Protection Program (PPP) Extended Through May 31, 2021

Businesses and nonprofits still in need of stimulus funds received good news this week when President Biden signed the Paycheck Program (PPP) Extension Act of 2021 on March 30, 2021.

Originally set to expire March 31, funding for PPP loans administered by the Small Business Administration (SBA) has been extended through May 31, 2021.

The Act passed the Senate on March 25 with overwhelming bipartisan support in a 92-7 vote. Supporters of the PPP Extension Act say this will give the SBA time to address challenges with the loan application process including error codes, delayed guidance and changes to the loan amount calculation for self-employed borrowers.

Application Deadline
While the PPP Extension Act extends the loan approval deadline to June 30, 2021, the SBA will be prohibited from accepting new applications for both first and second- draw PPP loans starting on June 1. Therefore, businesses looking for PPP funding need to get their application in by May 31, 2021.

No Additional Funding
More funding is not part of the PPP Extension Act since an additional $284 billion was made available in round three of PPP funding through the Consolidated Appropriations Act signed into law on December 27, 2020. In this current round of funding, maximum loans of $10 million are available to first-draw borrowers and up to $2 million for second-draw borrowers.

For more details on PPP loans and the application process, click here: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program or reach out to your Herbein advisor at info@herbein.com

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