Congress has approved the “PPP Extension Act of 2021,” which extends the Payroll Protection Program. Originally, it was scheduled to expire on March 31. The new application deadline is May 31. The PPP Extension Act of 2021 gives the SBA another month, until June 30, to process loan applications made by the new deadline. Congress only changed the deadline and no other modifications were made to the program.
According to official SBA data, by mid-March, it had approved more than 8 million loans through more than 5,000 lenders, totaling about $700 billion. About $186 billion of those loans were forgiven in 2020.
The American Institute of CPAs (AICPA) lobbied for the extension, saying that the “PPP has been the saving grace of the economic challenges brought on by the COVID-19 pandemic.” The National Federation of Independent Business also strongly supported the bill, saying, “Today’s passage to extend the authorization of the PPP loan program is good news for those owners who can take advantage of the extra time.”
Businesses owners who are eligible, or who have an application in process, should visit the SBA site for more details.
For questions about your situation, contact one of the team members below.
Mark R. Dreher, CPA – Partner
Barry S. Graham, CPA, CMA – Senior Audit Manager