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PPP Loan Deadline Extended to Allow More Businesses to Get Funds

Posted by Concannon Miller on Mon, Mar 29, 2021

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PPP-loanThe 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.

More information on PPP loans and how to apply can be found on the SBA’s website. Please contact us if your business needs assistance.

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Topics: COVID-19

Concannon Miller’s unique, holistic and intimate approach to financial health sets us apart from smaller CPA firms with more limited resources as well as mega firms where mid-sized clients struggle for attention. Contact us here to talk about improving your business.

This communication is designed to provide accurate and authoritative information in regard to the subject matter covered at the time it was published. However, the general information herein is not intended to be nor should it be treated as tax, legal, or accounting advice. Additional issues could exist that would affect the tax treatment of a specific transaction and, therefore, taxpayers should seek advice from an independent tax advisor based on their particular circumstances before acting on any information presented. This information is not intended to be nor can it be used by any taxpayer for the purposes of avoiding tax penalties.

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