PPP Extension Act of 2021
Mar 30, 2021
Statute: 135 Stat. 250
Became law: Mar 30, 2021
Mar 30, 2021
Statute: 135 Stat. 250
Became law: Mar 30, 2021
Summary
Gives small businesses more time to apply for government loans to help them pay their employees during the COVID-19 pandemic.
What problem does this solve?
The Paycheck Protection Program was about to end, but many small businesses still needed financial help to stay open. This law extends the program's deadline, allowing more businesses to get the support they need to survive.
What does this law do?
Extends PPP application deadline
Changes the final day for businesses to apply for a Paycheck Protection Program loan from March 31, 2021, to June 30, 2021.
Creates a loan processing period
Stops the Small Business Administration from accepting new applications after May 31, 2021, and gives it the month of June to process applications already received.
Who does this affect?
- Small businesses
- Employees of small businesses
- Lenders
What is the real world impact?
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Supports small businesses
Provides continued financial help to small businesses struggling from the economic effects of the COVID-19 pandemic. Extending the loan program helps prevent more businesses from closing and keeps people employed.
When does this start?
This law took effect on March 30, 2021, and sets new deadlines for the Paycheck Protection Program.
New application cutoff
The Small Business Administration will stop accepting new loan applications on May 31, 2021.