If you’re a small business owner in the U.S who is finding it hard to stay afloat and to pay your staff, you may be able to benefit from the Paycheck Protection Program (PPP). The U.S Small Business Association (SBA) recently announced a PPP loan application extension that gives business owners more time to seek the help they need. If you have applied before, you may be eligible to seek further assistance from the program. Application for the PPP loan, which was slated to close on March 31st has been extended to May 31, 2021. Unfortunately, since this is also Memorial Day, it would be more beneficial to keep Friday, May 28, 2021 in mind as the last day to submit your application.
Who Does the PPP Loans Extension Benefit?
The Paycheck Protection Program loan, introduced by the U.S Federal government in 2020, aims to help small businesses cushion the payment of their workforce in light of COVID-19. Established through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), PPP loans help businesses keep their workforce employed during the crisis. Small businesses have had several opportunities to seek assistance from this loan.
In December, SBA officials announced that another phase of application (funded at $290 billion) would be implemented. Through this, small business owners and not-for-profits could have applied for PPP loans up until March 31st or until funding has been exhausted. The extension should be of particular benefit to First Draw PPP Loan borrowers who received their loans in 2021. This may give you enough time to use up those proceeds and apply for a Second Draw PPP Loan by May 28.
What does the PPP Extension Stipulate?
On March 30, President Joe Biden formally extended that deadline, by signing the PPP Extension Act of 2021 into law. This not only allowed for a two-month PPP loan application extension but also made provisions for loan processing. Through the Act, the SBA has an additional 30-day period to process pending applications. This means loans can be processed and authorized by the SBA up to June 30, 2021. This does not mean that applications made after May 31 will be processed. Only applications that have been submitted in full by the new deadline can benefit from this.
The PPP Extension Act does not provide any additional funding for the current round of the PPP. If you have not received a PPP loan before, First Draw PPP loans are available to you. If you have previously received a PPP loan, certain businesses are eligible for a Second Draw PPP. The rules and eligibility requirements remain the same.
For more details on PPP loans, you may visit the SBA’s official PPP resource page.
How We Can Help
If you would like to find out about your eligibility but don’t know where to start, we’re here to help. We will guide you through the entire process and ensure you fulfill all the requirements, especially if you want to receive 100% PPP loan forgiveness. Let’s assist you with applying before the extended deadline. Bookkeeping Confidential is a full-service virtual bookkeeping company that caters to small businesses and startups. We focus on maximizing your profits. Connect with us, today!
This article is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bookkeeping Confidential assumes no liability for actions taken in reliance upon the information contained herein.