When the Economic Aid Act, part of the Consolidated Appropriations Act, 2021, was enacted in December of 2020, a new round of Paycheck Protection Program funding was released allowing eligible borrowers to apply for first or second draw PPP loans. Loans can be approved through March 31, 2021. (Note: PPP loan forgiveness applications are not affected by this date.)
Many borrowers worked with their lenders to receive these PPP loans, but some borrowers have not yet received their funding. Others have delayed their applications, waiting for clarifications in guidance or updates to lender processes that would accommodate previously enacted changes to the program.
This week, some lenders began announcing that they will soon or have already closed their application processes for this round of PPP loans. The AICPA and other organizations are calling for SBA to extend the application period; however, it is uncertain whether this may occur.
As a result, Borrowers who are eligible and interested in PPP loans may consider taking the following actions:
- Submit your loan application. Most lenders are using PPP loan portals to accept new loan applications. However, potential borrowers can visit the Treasury or SBA websites to obtain copies of the applications that will help them to prepare the documentation and data required by the lender portal. Copies of these applications are available as follows:
a. Schedule C filers applying for a first draw PPP loan using their gross income: https://home.treasury.gov/system/files/136/PPP-Borrower-Application-Form-for-Schedule-C-Filers-Using-Gross-Income.pdf
b. Schedule C filers applying for a second draw PPP loan using their gross income: ttps://home.treasury.gov/system/files/136/PPP-Second-Draw-Borrower-Application-Form-for-Schedule-C-Filers-Using-Gross-Income.pdf
c. Other eligible PPP borrowers applying for a first draw loan: https://home.treasury.gov/system/files/136/PPP-Borrower-Application-Form.pdf
d. Other eligible PPP borrowers applying for a second draw loan: https://home.treasury.gov/system/files/136/PPP-Second-Draw-Borrower-Application-Form.pdf
- If you have applied for your PPP Loan but have not received funding, check the status of your loan application. Some lenders will allow you to do this within the PPP loan portal while others may require that you reach out to them directly. If you have concerns about your loan status, contact your PPP lender.
- Lastly, continue to stay abreast of changes to the program. This recommendation continues to be important for borrowers in all stages of the Paycheck Protection Program. The program continues to change and evolve, and borrowers should be aware of the latest guidance and how it may affect them.
For questions about your PPP loan, please contact your HBK Advisor.
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