On March 30, just one day before the original expiration deadline of the Paycheck Protection Program (PPP), President Biden signed into law legislation moving the application deadline from March 31 to May 31.
The legislation separates the application deadline and the approval deadline for PPP and PPP2 loans, alleviating concerns by borrowers and lenders regarding the backlog for loan approval at the SBA. The SBA will now have 30 days from the application deadline to work through the applications submitted by lenders on behalf of borrowers.
The additional 60 days is welcome relief for small businesses, self-employed individuals, and nonprofits, as recent rule changes regarding eligibility and loan sizing left little time to apply before the original March 31 deadline. The extension also provides the SBA time to address the excess of loan applications that have already been submitted through its loan portal.
There is no additional funding for the current round of the PPP, for which Congress has appropriated approximately $293 billion. The SBA reports that over $211 billion in loans have been approved through March 28, leaving approximately $82 billion to be allocated under this program.
Key insights
- President Biden signed into law legislation extending the PPP through June 30, 2021.
- Approved applications can be submitted by your lender to the SBA through May 31, 2021. Contact your lender to understand their deadline for submission of your application and supporting documentation.
- The SBA will have the month of June to work through any applications received from banks/borrowers.
By Jack Rybicki Principal CLA T. 813.384.2701 Email
