With wide bipartisan support, Congress has approved the “PPP Extension Act of 2021,” which extends the Payroll Protection Program. It had been scheduled to expire on March 31, but the application deadline is now May 31. The act further gives the SBA another month, until June 30, to process claims made by the new deadline. The act changes only the deadline — Congress approved no other modifications to the program.
According to official SBA data, by mid-March, it had approved more than 8 million loans through more than 5,000 lenders, totaling about $700 billion. About $186 billion of those loans were forgiven in 2020.
The American Institute of CPAs lobbied for the extension, saying that the “PPP has been the saving grace of the economic challenges brought on by the COVID-19 pandemic.” The National Federation of Independent Business also strongly supported the bill, saying, “Today’s passage to extend the authorization of the PPP loan program is good news for those owners who can take advantage of the extra time.”
Businesses owners who are eligible, or who have an application in process, should visit the SBA site for more details or contact a financial professional.
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