On March 25, 2021, Congress passed the PPP Extension Act of 2021 (PPP Extension Act), to extend the application window for small businesses to apply for Paycheck Protection Program (PPP) loans by an additional two months. Qualified small businesses may now apply for both first draw and second draw PPP loans through May 31, 2021.
Businesses should note, however, that it is likely that individual banks will implement earlier cut-off dates due to Memorial Day (May 31), to allow them to process and submit applications to the SBA prior to the May 31 deadline. In addition, the PPP Extension Act extends the “covered period” during which borrowers may use PPP funds for forgivable expenses to June 30, 2021.
As approximately 69% of the appropriated PPP funds have already been exhausted, we strongly encourage all PPP applicants to get their applications to their respective lenders as quickly as possible. The PPP Extension Act only extends the PPP application window but does not add any additional money to the program. Accordingly, the PPP may run out of funds well in advance of May 31.