Congress has extended the date by which Paycheck Protection Program (PPP) loan applications can be made to May 31 by passing the PPP Extension Act of 2021. Prior to enactment, the application deadline for First Draw PPP loans and Second Draw PPP loans was March 31. The Act, which Congress passed Thursday, also authorizes the Small Business Administration (SBA) to process PPP loan applications for an additional 30 days after the new May 31 deadline. This authorization is restricted to loan applications made prior to June 1, 2021. President Biden is expected to sign the bill.
As of March 21, 2021, the SBA has disbursed $718 billion out of the $806 billion in funding made available for PPP loans, leaving $88 billion still available for new First Draw PPP loans and Second Draw PPP Loans. As of March 18, the SBA has forgiven $186 billion of PPP loans and has declined to forgive $0.6 billion in PPP loan applications submitted for forgiveness.
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