Tax Monitor

PPP Application Deadline Extended to May 31, 2021

March 31, 2021

By: Mark A. Mangano

There is still time to apply for a Paycheck Protection Program (PPP) loan. President Biden has signed the PPP Extension Act of 2021. The new deadline for borrowers to submit a PPP loan application is May 31, 2021. The Small Business Administration (SBA) will have until June 30, 2021 to process applications received before June 1, 2021.

The PPP was set to expire on March 31, 2021 but the SBA has struggled to process applications due to increasingly complex program options. Money remains available for the program from previous appropriations. In addition, there was insufficient time to make application for many potential applicants who may benefit from recent changes to eligibility rules and loan calculation formulas.

The PPP is a great resource for businesses impacted by the COVID-19 pandemic. If PPP loan proceeds are used for authorized expenditures, they are fully forgivable. Businesses that have not taken advantage of the PPP should act soon to determine if they qualify.