The application deadline for Paycheck Protection Program (PPP) loans has been extended two months from March 31 to May 31.
The extension will allow more businesses to apply for the funds and also allow more time for the U.S. Small Business Administration to process more applications. Congress approved the extension last week; it currently awaits President Biden’s signature.
More than two million PPP applications have been held up by error codes and approximately 190,000 applications remain unapproved, according to the American Institute of CPAs. The extension gives the SBA until June 30 to process PPP loans.
The United States is currently issuing both First Draw PPP loans and Second Draw PPP loans to businesses that already received First Draw loans. Find out more about the qualifications for First Draw loans here and Second Draw loans here.
PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. Loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, and utilities.
The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Learn more about the forgiveness rules here.
The SBA has about $50 billion left of the $290 billion allocated for PPP loans. The money is expected to last through mid-to-late April, officials said.