The PPP Extension Act of 2021, also known as the Paycheck Protection Program Extension Act, was recently passed by Congress to extend the deadline for small businesses to apply for financial assistance through the Paycheck Protection Program (PPP). The PPP, which was established by the CARES Act in March 2020, provides forgivable loans to small businesses to help them keep their employees on the payroll during the COVID-19 pandemic.
The PPP Extension Act extends the deadline for small businesses to apply for PPP loans from March 31, 2021, to May 31, 2021. This gives small businesses who may have missed the original deadline or who are just now feeling the financial impact of the pandemic an opportunity to apply for the PPP and receive the financial assistance they need to keep their doors open.
The PPP Extension Act also includes a provision that allows small businesses that have already received PPP loans to apply for a second loan if they have experienced a substantial loss of revenue. This will help small businesses that have been hit hard by the pandemic and who have exhausted their first PPP loan to continue to pay their employees and keep their businesses afloat.
Another important provision of the PPP Extension Act is the simplification of the loan forgiveness process for small businesses. The Act reduces the number of loan forgiveness requirements, making it easier for small businesses to have their loans forgiven. The Act also allows PPP borrowers with loans of $150,000 or less to use a new simplified forgiveness application process that requires less documentation.
The PPP Extension Act of 2021 is a crucial step in providing much-needed financial assistance to small businesses during the ongoing COVID-19 pandemic. The extension of the deadline for applying for PPP loans, the provision for a second loan, and the simplification of the loan forgiveness process will help small businesses keep their doors open and keep their employees on the payroll. This will be a huge relief for many small businesses that are struggling to stay afloat during these difficult times.