On March 30, 2021, President Biden signed into law the PPP Extension Act of 2021 (Act). The Act extends the termination date of the Paycheck Protection Program (PPP), which was set to close today.
The Act pushes the PPP application deadline from March 31, 2021, to May 31, 2021, in which eligible applicants can seek first and second draw PPP loans. The Act also provides the Small Business Administration (SBA) with an additional month to process applications received on or before May 31.
Many trade groups pushed for this extension due to hold code issues applicants were and are still experiencing that cause timing delays on PPP applications. It can take a few days to clear hold codes if you can satisfy the code with your lender, but can take up to a few weeks if the hold code requires satisfaction and approval by the SBA. These hold code issues come up when an item within the PPP loan application identifies the applicant as ineligible, or there is a mismatch or lack of information provided on the application when it undergoes diligence review by the SBA.
Taft’s SBA Task Force will continue to monitor changes related to the PPP. If you have any questions, please contact an SBA Task Force member. For additional information regarding the PPP program or other COVID-19 relief offered by the government, please review our COVID-19 Toolkit.