Businesses that have yet to take advantage of the Paycheck Protection Program (PPP), or need to apply for the second round, just got another chance with the passing of the PPP Extension Act of 2021. Signed in the nick of time, this bill moves the PPP application deadline from March 31 to May 31, 2021.
What does it mean for employers?
- The additional 60 days provided by the bill will greatly aid small businesses, not-for-profits, and the CPAs that serve them, with pending applications as well as the ability to file new applications. This extension should allow more businesses to take advantage of this important stimulus program.
- The PPP Extension Act also provides the Small Business Administration (SBA) more time, now until June 30, to address significant loan application process challenges, including confusing validation and error codes, delayed guidance, and changes to the PPP loan amount calculation for self-employed borrowers.
- The PPP Extension Act does not provide additional funding for the current round of PPP, which provides more than $290 billion in forgivable loans to small businesses and not-for-profits. From the program’s opening through March 21, the SBA has approved more than 3.1 million loans, shy of the total funds allotted at nearly $196 billion.
Support for businesses struggling due to the COVID-19 Coronavirus pandemic has not only continued in 2021 but has largely been expanded. In February, the Biden administration announced several changes to the Paycheck Protection Program (PPP)and then passed the $1.9 Trillion “American Rescue Plan” in March, which contained critical measures that will be a lifeline for businesses that take action.
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