March 31, 2021 - The Paycheck Protection Program (PPP) application deadline has been formally extended from March 31, 2021 to May 31, 2021.  President Joe Biden signed the PPP Extension Act of 2021 into Law on March 30, 2021.

Under the Extension Act, the last day for lenders to submit applications for First and Second Draw PPP Loans is May 31, 2021 and the SBA will have an additional 30 days to process the applications submitted before June 1, 2021. The PPP Extension Act does not provide any additional funding for the current round of the PPP.

The AICPA states that the additional 60 days provided by the bill will greatly help small businesses, not-for-profits, and CPAs complete existing PPP loan applications and file new ones. The Extension Act also provides the SBA time to address significant loan application process challenges, including confusing validation and error codes, delayed guidance, and changes to the PPP loan amount calculation for self-employed borrowers, according to the AICPA news release.

If you have any questions or would like more information on the PPP Extension Act, please contact your tax professional at Dermody, Burke, and Brown, CPAs.

The information reflected in this article was current at the time of publication.  This information will not be modified or updated for any subsequent tax law changes, if any.