Biden Extends PPP an Additional 2 Months
Initially set up a year ago, the Paycheck Protection Program was a source of relief as the pandemic paralyzed the American economy. This program has since been expanded and extended due to the ongoing situation. Last week, U.S Senate approved an extension of the small-business relief program, which has about $79 billion left to distribute. The bill passed with a 92-7 vote and was signed into law by President Biden on Tuesday this week. This is a two-month extension that will give small business owners until the end of May to apply for forgivable loans.
According to the Small Business Administration, there is still $79 billion left to be lent, even after the approval of about 3.1 million loans, starting from the beginning of this year to March 21st. Owners that spend forgiveness money on approved costs, such as worker salaries, are eligible to convert their PPP loans into grants. Many business groups and leaders urged Congress to extend the deadline so that small businesses have enough time to apply for the money.
The new round of PPP lending that opened in January was available since Congress had approved of more funds in December. Additionally, lawmakers approved an extra $7.25 billion in the latest $1.9 trillion stimulus bill. This bill also expanded eligibility to some nonprofits and online publishers. This month’s package includes a $28.6 billion grant program for restaurants. Restaurants that have received PPP money can tap the fund if they can demonstrate enough revenue loss. It has not been announced as to how the SBA will be distributing those grants.
With the latest PPP round, some businesses were able to apply for a second loan, if they had already used their first one and met the requirements regarding the number of employees as well as being able to demonstrate a decline in revenue. Unfortunately, these new forms and exclusive access periods for some small businesses meant that the roll-out of additional funding was slow and many applicants waited weeks for their financing to be processed.
Talley’s professionals have spent hundreds of hours reviewing the law, regulations, and SBA PPP FAQs issued on an almost daily basis and we are happy to assist you in the process. We are available to simply answer a quick question or assist in the application and/or forgiveness audit process.