PPP Deadline Extended to May 31, 2021
After a narrow vote, the U.S. Senate approved a bill to move the Paycheck Protection Program (PPP) application deadline from March 31, 2021 to May 31, 2021. The bill now goes to President Joe Biden for his signature.
The PPP Extension Act extends the filing deadline for PPP applications by 60 days and provides the Small Business Association (SBA) with an additional 30 days to finish processing applications received by May 31st. The additional time was needed in order to address significant challenges with the application process, including various error codes received by applicants and changing guidance. Currently, there are 190,000 small businesses with pending PPP applications.
During the second round of funding, the SBA has approved more than 3.1 million loans totaling nearly $196 billion in funding.
SBA Raises EIDL Loan Limit
Beginning the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 Economic Injury Disaster Loan (EIDL) program. Applicants can now receive a maximum loan amount of $500,000. The lending limit increased from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000.
Businesses that have already received the Economic Injury Disaster Loan do not need to submit a request for an increase at this time. The SBA will reach out directly via email and provide more details about how businesses can request an increase closer to the April 6th implementation date.
GBQ continues to monitor the guidance and will update you as new information is released. In the meantime, do not hesitate to reach out to one of our PPP team members, including Rebekah Smith, Dustin Minton, or Jeremy Bronson, should you require assistance or have questions.
Article written by:
Director, Accounting & Business Advisory Services
Rebekah Smith, CPA, CFF, CVA, MAFF
Director of Forensic & Dispute Advisory Services
Dustin Minton, CPA, MBA
Director, Assurance & Business Advisory Services