We’re back with another update on the Paycheck Protection Program (PPP). If you need to catch up before diving into the latest news, here are our previous articles on PPP:
- Make Sure You Know This About Your PPP Loan!
- New SBA PPP Forgiveness Guidelines
- Understanding PPP Round 2
Now that you’re all caught up let’s look at the newly approved application deadline extension for PPP Round 2.
PPP Extension Act of 2021
The PPP Extension Act of 2021, or H.R. 1799, was recently signed into law by President Biden after it passed the U.S. Senate in a vote of 92-7.
With the new Extension Act, PPP filers now have until May 31, 2021, to file a Paycheck Protection Program application. The deadline was set to expire on March 31, and the President signed the bill just a day before the expiring deadline.
The Act also gives the Small Business Administration (SBA) an additional 30 days to finish processing applications after the May 31 deadline. This is welcome news, given the delays the SBA has had to address. These delays include error codes, the postponement of required guidance, and validation checks put into place to prevent funding for fraudulent applications.
Does This Mean There is More PPP Funding Available?
The PPP Extension Act included no more additional funding for this second round of PPP. So far, Congress has provided over $290 billion in forgivable loans through the Paycheck Protection Program.
From January 11, when the program first opened, through March 21, the government has approved over 3 million loans, totaling close to $200 billion in funding for nonprofits and small business owners.
Can I Still Apply for the First Draw PPP Loan?
If you have not applied for a PPP loan before but are interested now, you can still apply for the First Draw by the May 31 deadline. This does not mean you will qualify and be approved, but you still have the option to apply.
If you received the First Draw and already have or plan to use the total amount for allowed uses, you may qualify to apply for the Second Draw PPP loan. You cannot have over 300 employees and will have to provide proof showing a minimum of 25% reduction in gross receipts between comparable 2019 and 2020 quarters.
You can find a lender through Lender Match. Loan terms are identical no matter which lender or borrower you choose.
Here are sample forms you can use to prepare for applying with a lender:
- Second Draw PPP sample application form
- PPP Second Draw Borrower Application Form – Schedule C Filers Using Gross Income
I Need Help Filing for PPP!
If you’re not sure how to file or have questions regarding the First or Second Draw for PPP loans, JStevens Accounting is ready and willing to help you. We have extensive knowledge of accounting and bookkeeping to help you navigate the entire process so you can meet forgiveness requirements.
With the Second Draw PPP loan being extended, there’s still time to apply. Don’t wait until the deadline is closer, or you may miss out on funds. At this point, we do not know yet if there will be additional funding or another extension. Contact us today to schedule a consultation to help you make the best financial decision for your business or nonprofit.