Congress Extends Paycheck Protection Program Application Deadline to May 31

March 26, 2021Alerts

Congress has extended the date by which Paycheck Protection Program (PPP) loan applications can be made to May 31 by passing the PPP Extension Act of 2021. Prior to enactment, the application deadline for First Draw PPP loans and Second Draw PPP loans was March 31. The Act, which Congress passed March 25, also authorizes the Small Business Administration (SBA) to process PPP loan applications for an additional 30 days after the new May 31 deadline. This authorization is restricted to loan applications made prior to June 1, 2021. President Biden signed the bill into law on March 30.

As of March 21, 2021, the SBA has disbursed $718 billion out of the $806 billion in funding made available for PPP loans, leaving $88 billion still available for new First Draw PPP loans and Second Draw PPP Loans. As of March 18, the SBA has forgiven $186 billion of PPP loans and has declined to forgive $0.6 billion in PPP loan applications submitted for forgiveness.

For more information on this topic, contact the author Paul Edelberg at [email protected] or any other member of the firm's Corporate or Financial Services Industry practice groups.