“…small businesses is the backbone of our economy…”
-President Joe Biden
President Biden has signed the PPP Extension Act of 2021, providing some flexibility for small businesses in applying for this loan program. The Paycheck Protection Program (PPP) was created by the Small Business Administration (SBA) to alleviate at least some financial pressures off of these small businesses.
Earlier this month, the US Senate passed this bill which modifies the PPP guidelines by extending the application deadline. Now as law, the new PPP application deadline is May 31, 2021. The law, however, does not provide any additional funding, but rather provides small businesses with additional time to apply for the loan program to utilize the remaining funds and the additional $7.25 billion that was provided by the American Rescue Plan Act (ARPA, 2021).
This new law provides an extension which improves the odds of a small business securing a loan, particularly for businesses that have struggled in the past with the PPP application process.
An additional extension is also included in this law for the SBA, providing an additional 30 days to complete the processing of applications by June 30, 2021. This helps the SBA catch up with their backlog of applications that have been received over the course of the pandemic in first and second draw loan applications.
Now, more than ever, businesses have the opportunity to take advantage of PPP loans. If you’re not sure if your business is eligible or if you need guidance throughout the application process, please contact CTBK’s PPP Team. pppteam@ctbk.com | 716-630-2400