IMPORTANT UPDATE FOR 2021: Congress has approved an extension of the PPP loan program until May 31, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020. Please click for more details about PPP loans.
In this 2-minute read:
- The PPP application deadline is being extended to 5/31/2021
- New application, simpler rules
- Second draw PPP loans
In late December 2020, the Senate passed a bipartisan measure extending the PPP program. On March 30, 2021, President Biden signed the PPP Extension Act of 2021 which extends the new loan application deadline to May 31, 2021. After this, the SBA will no accept any new PPP applications, but only process those applications it has received prior to June 1.
The first round of ~$350 billion in emergency funding quickly ran out, and the PPP was re-funded with an additional $320 billion to help American small businesses struggling due to the effects of COVID-19, and since the pandemic and its financial impacts continue into 2021, congress voted to re-fund the PPP program under the CARES act.
Get your PPP loan or second draw PPP loan through Womply! Womply has helped over 200,000 businesses get their PPP funding. It’s free to apply for a PPP loan, and Womply can help connect you with an SBA lender that’s right for you! Start your PPP application.
The fact that the coronavirus pandemic has continued to severely impact American businesses, and you can see the need for an extension of the PPP application deadline to allow more struggling businesses time to apply.
Key PPP updates for 2021 include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
The application, qualification, and PPP loan forgiveness process has been updated for 2021
There have been several revisions to the PPP loan forgiveness requirements and extensions to the “covered period” and other rules over the past months.
Small business owners who have been indecisive about whether to apply for a Paycheck Protection Program loan now have another few weeks to apply, or leave that emergency business funding—which is 100% forgivable if you spend PPP the funds as intended and apply for forgiveness—on the table.
We predict there will likely be additional extensions of the PPP loan program in the Biden administration.
Is there a “double dip” or second-draw PPP loan option for struggling businesses?
Included in the new bill for 2021 is a provision for “second draw” PPP loans for struggling small businesses who already received a PPP loan, provided they meet certain criteria.
Read what you need to know about second draw PPP loans here.
New emphasis on smaller community lenders, women-, minority-, and veteran-owned businesses
The PPP rules now allow community lenders serving low- and moderate-income areas first access to the SBA’s PPP application portal in an effort to reach businesses that were unable to get their applications in during previous PPP enrollment periods.
Click to read full details about 2021 PPP updates for women, minority, veteran owned businesses.
As the COVID-19 pandemic continues on and new cases are spiking, causing some states to “re-close” some businesses and spaces or tighten restrictions, there were concerns that the initial intent of the Paycheck Protection Program as a “bridge” to the summer months was inadequate to meet the serious financial needs of America’s businesses. This is the reason for the renewal of the PPP loan funding for 2021.
Without these revisions to the PPP program that will hopefully allow easier access and additional funds under the CARES act, many of America’s small businesses would continue struggling under very difficult circumstances.
You may also like:
- How to get your paycheck protection program loan forgiven
- Click here for the full PPP loan forgiveness application
- Click here for the new Form 3508EZ application
Let Womply help you apply for your PPP loans!
As you know, it’s free to apply for a PPP loan, and we know you have lots of choices. So why should you let Womply connect you with an approved SBA lender? Because we know what we’re doing and people love the help we provide. We’ve helped over 200,000 businesses, contractors, sole proprietors, and self-employed individuals get approved. Don’t wait! The deadline is May 31, 2021.
Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!