# PPP Extension Act of 2021

This bill extends the deadline for small businesses to apply for Paycheck Protection Program (PPP) loans, which were emergency financial assistance created during the COVID-19 pandemic to help companies keep paying their employees. Originally, the program was set to stop accepting new applications on March 31, 2021. This bill pushes that deadline back to June 30, 2021, giving small business owners an extra three months to apply for these forgivable loans.

The practical effect is straightforward: if you own a small business and missed the original March deadline, you'd get another chance to apply for PPP funding through the end of June. The bill also extends the funding available for these loans, meaning the government is allocating additional money to cover applications submitted during this extended period. However, there's an important catch built into the bill. Starting June 1st, the Small Business Administration will stop accepting brand new applications from lenders wanting to participate in the program. After that date, they'll only process applications that lenders had already submitted before June 1st. This means if a lender hasn't applied to participate in the PPP by early June, they won't be able to start processing new borrower applications, even though the program technically runs through June 30th.

For most small business owners, this bill simply means more time to get your application in if you haven't already. For lenders and financial institutions involved in distributing these loans, it means they need to get their own paperwork submitted early in June or they'll be locked out of the program entirely for the remainder of the extension period.

PPP Extension Act of 2021

Bourdeaux, Carolyn

PPP Extension Act of 2021 This bill extends the Paycheck Protection Program, established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019), through June 30, 2021. Currently, the program is set to expire on March 31, 2021. For the final 30 days of the program (i.e., from June 1 until June 30), the Small Business Administration may only process applications submitted prior to June 1, and it may not accept any new loan applications.