On March 30, President Biden signed a law providing PPP loan extensions.
That law extended the deadline to apply for first draw and second draw PPP loans until May 31.
If you aren’t familiar with PPP, it stands for the Payroll Protection Program.
And that program offers federal funds that you can borrow to pay yourself and your employees, if you have any, which is why it’s called a loan.
But, if you spend the money in accordance with the rules. The loan is 100% forgivable. Meaning the federal government is offering money for you to pay yourself and run your business.
So, if your business has suffered during the pandemic, this is something you really should consider.
Warning About PPP Loan Extensions
Originally, the deadline for applications for this funding was the end of March. But now, that has been extended to the end of May.
HOWEVER, please BE AWARE that the cutoff time of 11:59 pm on May 31 is the final cutoff for the lender to submit applications to the SBA’s PPP platform.
As a borrower, you need to submit your application and supporting documents to your chosen lender much earlier.
Despite the official PPP loan extensions, financial institutions can set their own limits on how long they’ll accept applications from clients, giving you an extra reason not to wait until the last minute.
For example, Langley Federal Credit Union has decided to stop accepting applications on May 15 and will use the last two weeks before the official deadline to work through incomplete submissions.
But, if your application is submitted in the last days, or even on the final day of the application period and you don’t hear anything immediately, don’t panic.
The SBA has set aside the entire month of June to process applications as long as they were submitted on time. And as long as there is still funding available.
The probability that the money runs out is another reason you shouldn’t wait until the last minute. The funds were exhausted during the first funding round last year.
Listen Now: Details About First Draw vs. Second Draw PPP Loans In This Podcast
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Additional Money Dates
The federal government has changed some other dates that could affect your money, including:
*The deadline for most people to file 2020 federal income tax returns. (Get details here because you may have even more time.)
*The deadline to file a return to get an unclaimed 2017 tax refund.
*The deadline to make eligible contributions for Health Savings Accounts.
*The deadline to make contributions to retirement accounts for the 2020 tax year.
May 17th is the new deadline for all of the above-listed items.