Congress has passed the PPP Extension Act of 2021, which will extend the time frame to obtain a first or second draw on the Paycheck Protection Program (PPP) until June 30, 2021. President Biden is expected to sign the Act into law.
The ability to obtain a PPP loan is due to expire on March 31, 2021. After mid-stream changes in the program during 2021, the extension will give many small businesses the additional time needed to obtain a PPP loan. While the program is extended until June 30, 2021, the SBA is prohibited from accepting any loan applications after May 31, 2021. This will give the SBA the month of June to fully process all loans.