In this 2-minute read:
- The Paycheck Protection Program Extension Act of 2021
- New PPP loan application deadline of June 30, 2021
- No new PPP loans will be accepted by SBA after June 1, 2021
Big news for small businesses, independent contractors, sole proprietors, and self-employed individuals looking for PPP loans: the Paycheck Protection Program (PPP) loan application deadline has been extended.
The House and Senate have passed bill H.R 1799 – PPP Extension Act of 2021 that extends the previous March 31, 2021 PPP loan application deadline to June 30, 2021. The bill was signed into law by President Biden on March 30, 2021. (PLEASE NOTE: the effective application deadline is May 31, 2021. See below.)
This is great news not only for these potential borrowers that have been hard-hit by COVID-19 lockdowns and the resulting economic uncertainty, but for the SBA-approved lenders they have been flocking to, who have had their own issues trying to modify their processes and systems to deal with new PPP rules, new PPP application forms, and the crush of new applicants.
The PPP Extension Act of 2021 (transcript)
The portion of the bill that extends the application deadline reads as follows:
To amend the Small Business Act and the CARES Act to extend the covered period for the paycheck protection program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1, Short title.
This act may be cited as the “PPP Extension Act of 2021”.
Sec. 2. Extension of Covered Period for Paycheck Protection Program.
(a) IN GENERAL.—Section 7(a)(36)(A)(iii) of the Small Business Act (15 U.S.C. 636(a)(36)A(iii)) is amended by striking “March 31, 2021” and inserting “June 30, 2021 “.
(b) FUNDING.—Section 1102(b)(1) of the CARES Act (Public Law 116-136), as amended by section 323 of the Economic Aid to Hard-Hit Small Businesses, Non-profits, and Venues Act (Public Law 116-260), is amended by striking “March 31, 2021” and inserting “June 30, 2021”.
(c) RESTRICTION.—From June 1, 2021, through June 30, 2021, the Administrator of the Small Business Administration shall not accept new lender applications for loans under paragraph (36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and shall only process such lender applications that have been submitted to the Administrator before June 1, 2021.
IMPORTANT! The deadline for submission of new PPP applications is MAY 31, 2021. After that date, SBA will accept no new applications
It’s important to note that although the bill will extend the PPP application deadline to June 30, 2021, the bill’s language also places a restriction on the last 30 days, during which the SBA will accept no new PPP applications. Rather the SBA will only process PPP applications that have already been submitted to the SBA prior to June 1, 2021.
This effectively means that if you want to get a PPP loan, you need to hurry. If your lender hasn’t submitted your PPP application to the SBA prior to June 1, 2021, you will not be able to get your loan approved and funded. Start your PPP application now!
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