PPP Deadline Extended to May 31

There’s still time for businesses (and sole proprietors) to apply for Paycheck Protection Program loans.

With more than $100 billion left in the budget for the Paycheck Protection Program, Congress has passed a bill extending the application period for PPP loans to May 31. The previous deadline was March 31.

After a two-week period in February and March during which only the smallest businesses were eligible to apply for loans, the application process is now open again to medium-sized and large businesses as well.

Who currently qualifies for PPP funding?

First-Time Borrowers:

  • Who have 500 or fewer employees and are eligible for other SBA 7(a) loans.
  • Sole proprietors, independent contractors, and eligible self-employed individuals, not-for-profit organizations.
  • Accommodations and food services operations with fewer than 300 employees per physical location.

Previous PPP Borrowers:

  • Who have 300 or fewer employees.
  • Who have used all or will use all of their first PPP loan for authorized uses.
  • Who can show a 25% decline in gross revenue decline in any 2020 quarter compared to the same quarter in 2019. (For loans over $150,000, borrowers must submit documentation to demonstrate this revenue reduction; for loans under $150,000, documentation is not required until the borrower applies for forgiveness.)

Since the PPP was created in 2020, there have been changes in what types of businesses can qualify for the funds, which expenses are eligible, how much businesses can borrow, and under what circumstances the loan is forgivable. In the second stimulus package, passed in January 2021, many of these rules were adjusted or clarified.

In the coronavirus relief package passed earlier in March, called the American Rescue Plan, the PPP underwent some significant changes designed to make the program more equitable for smaller businesses owned by people of color and women, and more helpful to independent contractors and businesses with few employees. While, the program has come under fire recently for how these changes were implemented, including the decision by the Small Business Administration not to allow changes to be retroactive, the extension will help many more businesses apply for a loan.

The bill to extend the PPP application period received broad bipartisan support, passing 415-3 in the House and 92-7 in the Senate.

If you have questions about how to apply for a PPP loan or whether your business qualifies, we can help. Email us at info@sbfcpa.com.

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