Today, President Biden signed an extension of the popular Paycheck Protection Program (PPP), which was created last year to help small businesses weather the economic fallout from the coronavirus pandemic. The deadline to apply for a PPP loan has been extended from March 31 to May 31, 2021. The law extends authorization of loans to June 30, 2021 to give the Small Business Administration (SBA) additional time to process applications.

Businesses that haven’t taken advantage of the first draw PPP loans now have more time to apply.  If your business is applying for a second draw PPP loan there are additional qualifications, such as experiencing a 25% or greater drop in revenue in any 2020 calendar quarter when compared to the same quarter in 2019.

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program

As a reminder, in early March, the SBA issued new rules which increased the maximum borrowing to self-employed individuals filing on a Schedule C. 

PPP Rule Change for Schedule C Filers

Contact your CPA at Ketel Thorstenson right away to ask questions about eligibility!