For over a year, our associates have worked around the clock to ensure our clients receive the support they need through the Paycheck Protection Program (PPP). When we learned that the President signed a bill into law extending the PPP loan application deadline from March 31, 2021 to May 31, 2021, we were elated because we knew our mission could continue.
In addition to businesses having more time to complete their applications for first-draw or second-draw PPP loans, the bill also gives the Small Business Administration (SBA) more time–now until June 30, 2021– to process the loans.
While the extension is definitely a relief to borrowers still processing applications, this does not mean funding will continue to be available until the deadline. As of March 28, 2021, the SBA had approximately $79 billion in PPP funding remaining. It is expected that the funds will be exhausted in the coming months as borrowers take advantage of the new Schedule C calculations and borrowers that recently applied for a First Draw become eligible to apply for a Second Draw loan (see details below).
Subject to availability of funds, applications submitted prior to the May 31, 2021 deadline will continue to be processed for approval prior to the June 30, 2021 funding deadline.
Remember, applications are taking longer to process because of additional reviews the SBA is performing on each application. We cannot guarantee your application will be processed and approved by the SBA before funds are exhausted, or the June 30, 2021 funding deadline. All applications submitted to us will be processed on a best-efforts basis.
Important updates to the PPP
General Second Draw PPP Eligibility Requirements
- Borrowers may not employ more than 300 employees (with limited exceptions for certain business categories and non-profit organizations)
- Borrowers must have used or will use the full amount of their first PPP loan on or before the expected date on which the second draw PPP loans is disbursed
- Borrowers must demonstrate at least a 25% reduction in gross receipts in a quarter in 2020 relative to the same quarter in 2019 (businesses that did not operate during first half of 2019, that operated in second half of 2019 can look to a reduction in any quarter of 2020 compared to 2019)
- Borrower’s business must be currently operating
Revised Calculation for Schedule C Filers
On March 3, 2021, the SBA issued an Interim Final Rule implementing changes to the Paycheck Protection Program to remove certain eligibility restrictions and allow individuals who file an IRS Form 1040, Schedule C to calculate their maximum loan amount using gross income. The changes apply to both First Draw and Second Draw PPP Loans.
Streamlined Forgiveness Process
If your PPP Loan was $150,000 or less, your loan forgiveness has become more streamlined. The new forgiveness process for these loans doesn’t require you to submit documentation at the time of your forgiveness application—and only requires you to complete a 1-page attestation form. Visit our PPP Forgiveness page.
Additional Recovery Resources from the SBA
COVID-19 Economic Injury Disaster Loan
The EIDL program offers businesses 30-year fixed-rate loans that provide capital for normal operating expenses, including health-care benefits, rent, utilities and fixed debt payments, for a certain period. These loans are not forgivable, unlike EIDL Advance loans or money lent through the Paycheck Protection Program. Beginning April 6, small businesses and non-profits can apply for up to 24 months of relief, with a maximum loan amount of $500,000. The previous limit for such businesses was six months, with a maximum loan amount of $150,000. Learn More.
Restaurant Revitalization Fund
The American Rescue Plan Act that President Joseph Biden signed into law recently created a new federal grant program for restaurant owners with 20 or fewer locations: The Restaurant Revitalization Fund (RRF). While Congress is urging the SBA to start accepting applications and disbursing the funds within weeks, the grant program is still being set up and is not yet accepting applications. Learn More.
Shuttered Venue Operators Grant
The Shuttered Venue Operators Grant (SVOG) program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance. Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees. Learn More.
If you have any questions, reach out to our dedicated PPP associates at 877-538-3335 from Monday to Friday, 8:00 am – 5:00 pm CT.
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