PPP Deadline Extension plus Other Program Updates
The PPP Extension Act of 2021 has been formally signed by President Biden, which extends the Paycheck Protection Program through May 31, 2021.
The program, originally scheduled to expire on March 31, 2021, will continue accepting applications until May 31, 2021. We would like to note that May 31, 2021 is Monday, Memorial day so applications should be submitted by Friday, May 28. The extra time will allow the Small Business Association to process additional applications submitted prior to the new deadline as well as address:
- Loan application issues including validation error codes
- Delayed guidance
- Changes to the loan calculation amount for self-employed borrowers
- Note there is no additional funding available from the original amount of $290 billion provided by Congress.
June 30, 2021 is now the last day for the SBA to process applications submitted by the new May 31 deadline. We will continue to inform you of any updates as they become available. Below are details outlining other relief program updates.
Shuttered Venue Operators Grant (SVOG)
The Shuttered Venue Operators Grant provides emergency assistance for eligible venues affected by COVID-19 including small businesses, nonprofits and venues. Briefly, eligible applicants may qualify for grants equal to 45% of their 2019 gross earned revenue, with the maximum amount available for a single grant award of $10 million. Please refer to the SBA website for additional program information (link below).
- The program opens April 8, 2021
- PPP loans are now allowed in addition to the grant
- Grant amounts will be reduced by PPP loan proceeds
Restaurant Revitalization Fund (RRF)
The RRF was created as part of the American Rescue Plan Act to provide restaurants with grants equal to their pandemic-related revenue loss. Refer to the SBA website in the coming weeks for additional program information.
- Program is slated to open in early April
- Grant to equal pandemic related revenue loss (capped at $10 million per entity or 5 million/location
- Prioritization of applications based upon entity size
- Eligible expenses include payroll, mortgage payments, rents, utilities, maintenance expenses, supplier and food and beverage expenses
SBA raises COVID-19 EIDL loan limit to $500,000
The U.S. Small Business Administration is more than tripling the maximum amount that small businesses and nonprofits can borrow under the COVID-19 Economic Injury Disaster Loans (EIDL) program.
- Existing borrowers will be able to request an increase beginning April 6
- The loan limit for loans will jump from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000
- Any loans in process when the new loan limits go into effect will automatically be considered for the new maximum limits
Note that the payment deferral period for EIDL has been extended as follows:
- 2020 EIDLs – 24 months from the date of the note
- 2021 EIDLs – 18 months from the date of the note
The SBA will provide additional information on their website in the coming weeks. They will also reach out to existing borrowers on how they can request an increase.
Additional information can be found on the sba.gov website.
As always, please contact us at 973-298-8500 with any additional questions.