03/31/2021

PPP Application Deadline Extended

it was extended to May 31, 2021

The Paycheck Protection Program (PPP) deadline has been extended: President Joe Biden has signed the PPP Extension Act of 2021. The new law extends the PPP application filing deadline from March 31, 2021, to May 31, 2021, thus providing potential PPP borrowers additional time to submit their applications. The law does not provide the PPP with any additional funding. However, $7.25 billion in additional funding was recently provided in the American Rescue Plan Act.

PPP basics

The PPP was established in March 2020 by the CARES Act. The program was designed to help small employers meet their payrolls during the economic crisis caused by the COVID-19 pandemic. PPP loans are available to virtually every U.S. business with fewer than 500 employees that was affected by COVID-19, including sole proprietors, self-employed individuals, independent contractors and nonprofits.

PPP loans generally are 100 percent forgivable if the borrower allocates the funds on a 60/40 basis between payroll and eligible nonpayroll costs. Nonpayroll costs originally were limited to mortgage interest, rent, utilities and interest on any other existing debt, but the Consolidated Appropriations Act (CAA), enacted in late 2020, significantly expanded the eligible nonpayroll costs. For example, borrowers now can apply the funds to cover certain operating expenses and worker protection expenses.

Please select this link to read the complete blog post from OSAE Strategic Partner Clark Schaefer Hackett (CSH).