The Paycheck Protection Program (PPP) application deadline formally changed from March 31 to May 31 this past Tuesday (3-30-21) when President Joe Biden signed the extension into law. The PPP Extension Act, which extends the filing deadline for PPP applications by 60 days and provides an additional 30 days for the SBA to finish processing applications received by May 31.
The PPP program was established to help small businesses cope with the COVID-19 pandemic that erupted in March 2020.
The additional 60 days provided by the bill will help small businesses, non-profits, and CPAs that serve them complete existing PPP loan applications and file new ones. The extension act also provides the SBA time to address significant loan application process challenges, including confusing validation and error codes, delayed guidance, and changes to the PPP loan amount calculation for self-employed borrowers. The bill would also allow the agency an extra month to process applications after the program closes.
The PPP Extension Act does not provide any additional funding for the current round of the PPP.
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