PPP Application Deadline Extended to May 31
On March 25, 2021, Congress passed the PPP Extension Act of 2021. It now goes to President Biden for signing into law. This piece of legislation will extend the Paycheck Protection Program application deadline from March 31 to May 31, 2021. Under this new legislation, applications can be submitted to the Small Business Administration through May 31, and the SBA will have until June 30, 2021, to approve them.
The SBA also noted in its recent Senate testimony that two million PPP applications have been held up by error codes, and approximately 190,000 applications remain unapproved due to these hold codes.
The PPP Extension Act of 2021 does not provide additional funding to the PPP. Since the program reopened in January for First Draw and Second Draw loans, the SBA has approved about 3.1 million loans, totaling nearly $196 billion, as of March 21. In Senate testimony, the SBA said it expects the PPP to have enough funding to last through mid-April.
What Business Owners Should Know
For business owners with pending or submitted PPP applications currently waiting for approval, this extension will provide additional time to process those applications. Not all applications are guaranteed to be approved, but the application deadline extension will allow more time for the SBA to correct current issues.
For questions, please reach out to your Delap advisor.