The PPP Application Deadline Has Been Extended to May 31st

With the rapidly approaching PPP deadline looming overhead, businesses who still haven’t applied to the Paycheck Protection Program (PPP) got some good news last week. On March 25^th, the Senate passed the “PPP Extension Act of 2021” which extends the program deadline by two months. Here is what you need to know:

The New Deadline to Apply for the PPP is May 31^st, 2021

The original March 31^st, 2021 deadline for the program has been extended to May 31^st, 2021. The SBA will have an additional 30 days after the deadline to process pending applications.

The President Will Sign the Bill into Law This Week

The bill will now be sent to President Biden who is expected to sign it into law this week.

The Extension Helps Applicants Who Are Affected by Recent Eligibility Changes

After recent changes that were announced just weeks before the previous PPP application deadline, many businesses that became eligible have been scrambling to get their applications together. This extension of the application deadline will allow businesses more time to apply and the SBA more time to process applications.

As a reminder, the changes that were enacted in February included:

• an exclusive 14-day priority application window for businesses with fewer than 20 employees that lasted from February 24^th, 2021 to March 10^th, 2021.

• new eligibility guidelines allowing sole proprietors, independent contractors, and self-employed Schedule C businesses to calculate their PPP loan amount by using gross income instead of net profit.

• elimination of certain restrictions which allowed applicants that fall into the following categories access to PPP loans:

• “Business owners with prior non-fraud felony convictions (consistent with a bipartisan congressional proposal)

• Small business owners who have struggled to make student loan payments (by eliminating student loan debt delinquency as a disqualifier to participating in the PPP)

• Non-citizen small business owners who are lawful U.S. residents (by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP).”

Ready to Apply?

If you’re getting ready to apply, check out our PPP Application Checklist for a list of documents you need to apply, more information about eligibility guidelines, and loan forgiveness updates.

Still Have Questions?

We’ve got answers! Our COVID-19 Resource Center has up-to-date information and helpful tips for business owners like this blog with PPP FAQs and this PPP Loan Forgiveness Guide.

For more information about how to apply for a PPP loan, click here or call us at (844) 284 – 2725.