IMPORTANT UPDATE FOR 2021: Congress has approved an extension of the PPP loan program. SBA will accept applications through May 31, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020. There are simpler rules and a new application form. Please click for more details about PPP loans in 2021.
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.
On June 5, 2020, President Trump signed into law new updates to PPP loan forgiveness requirements, extending the covered period to 24 weeks, reducing the minimum loan funding that must be spent on payroll to 60%, and easing the requirements for maintaining staffing and compensation levels. Please read the details here.
The House passed additional PPP and EIDL appropriations on Thursday, April 23, 2020, and President Trump signed the bill renewing funding for these SBA emergency loans and grants on Friday, April 24. This funding, too, was exhausted, and congress approved an additional $900 billion stimulus package in late December 2020.
There will likely be continuing overwhelming demand for the PPP program in 2021 (as in the first round). Due to the stipulations of the second round of funding, a portion could only be distributed via a specific subset of lenders (intended to reach a wider variety of businesses). For 2021, additional groups of businesses may apply for PPP loans. (The PPP has been renewed as of January 2021. President Biden signed the PPP Extension Act of 2021 on March 30, extending the effective application deadline to May 31, 2021.)
We will keep this article updated with additional information as the situation develops.
NOTE: THE DEADLINE FOR PPP APPLICATIONS HAS BEEN EXTENDED TO MAY 31, 2021.
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.
If the PPP runs out of money (again), will I still get my loan funding?
If your PPP loan has already been approved, you will get your funding. When your loan is approved by a verified SBA 7(a) lender, you are assigned what’s called an E-Tran number. This effectively marks your funds as “spent” under the PPP program and prevents the SBA from approving loans for funding it doesn’t have allocated for use.
Once PPP loans are approved, it typically takes a few days for your lender to deliver the funds to your account. Buy law, they have 10 calendar days, but we’ve been seeing reports of businesses and contractors getting their money much sooner.
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 application deadline is May 31, 2021.
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