On March 30, 2021, just one day before the expiration of the Paycheck Protection Program (“PPP”), President Biden signed the Paycheck Protection Program Extension Act, H.R. 1799, which extends the period businesses have to apply for a PPP loan until May 31, 2021. The SBA will have until June 30, 2021 to process applications received before June 1, 2021, but cannot accept any loan applications after May 31.
This extension provides many small businesses an extra 61 days to calculate and to apply for a PPP loan. We continue to recommend that if eligible and interested, small businesses get their applications in as quickly as possible because the legislation did not increase the amount of available funds, and through March 28, 2021, approximately 75% of the appropriated funding has been allocated to approved loans. In addition, we have heard that certain lending institutions who have previously stopped accepting applications in anticipation of the March 31 deadline may either experience delays in reopening or may not reopen their application portals.