On March 30, 2021, President Biden signed the PPP Extension Act of 2021 into law.
Previously, the SBA had until March 31, 2021 to approve new first draw or second draw Paycheck Protection Program (PPP) loans. Many lenders closed their application processes or portals early, to ensure the SBA had time to approve loans in the queue. This early close, paired with changes made to the program in late February and early March, caused some confusion at the end of the original application period.
With the PPP Extension Act of 2021 now enacted, the program is extended to May 31, 2021. SBA will have an additional 30 days to approve loans after this deadline. This Act does not affect PPP loan forgiveness applications or timing.
Those interested in obtaining a first or second draw PPP loan should consider the following actions:
- Ensure eligibility requirements are met. The PPP has evolved since the program was introduced by the CARES Act in March 2020. Potential borrowers should understand program rules and eligibility requirements before applying.
- Watch for communication from your lender. As many lenders have closed their loan application portals, it is unknown when they may reopen.
- Prepare your application and related documentation. The SBA and Treasury have provided guides to help determine eligible loan amounts, measure gross receipts reductions, and ensure proper documentation is submitted with the loan application.
For questions regarding PPP, please contact your HBK Advisor.