Biden Signs PPP ExtensionMarch 30, 2021
Today, March 30, President Joe Biden signed legislation delaying the Paycheck Protection Program (PPP) deadline to May 31 from March 31. The Senate had previously voted 92-7 in favor of the legislation, following House passage the previous week.
The loans, which are approved by the Small Business Administration (SBA) and distributed by private lenders are eligible for forgiveness if the businesses maintain their payroll. This new law would also allow the SBA thirty days after the May 31 deadline to process pending applications.
The latest round of PPP loans came with additional requirements, such as additional compliance checks meant to prevent fraud. These requirements caused the processing process to be much slower, resulting in many banks closing down registration long before the end of March in order to process the outstanding applications before the previous March 31 deadline.
Extending the deadline will allow many more small businesses to get the capital they need to survive the economic downturn caused by the pandemic. You can find out more about the application process here.