Update provided by ANCOR:
Hello ANCOR members! Last week, we let you know that Congress had sent a bill to the President to extend the deadline to apply to the Paycheck Protection Program (PPP) from the end of March to May 31 instead. President Biden officially signed that legislation into law this week. Note that the Small Business Administration (SBA) has announced that they will give lenders (banks, etc.) an extra 30 days to process applications as long as those applications are submitted by May 31st. To learn more, we encourage our members to visit the SBA’s website for more information – particularly since, as we mentioned previously, it released new application forms to use to apply for forgivable loans.
For your convenience, we share a synopsis of the extension provided by ASAE below:
President Biden signed into law the two-month extension to apply for a Paycheck Protection Program (PPP) loan. As a refresher, the legislation extends PPP through May 31 and allows 501(c)(6) organizations and others more time to pursue a second PPP loan. Further, if eligible organizations apply by May 31, the Small Business Administration will permit lenders an additional 30 days to process and approve any outstanding applications.
Eligibility criteria for a second PPP loan are as follows:
- The applicant received a first PPP loan and will or has used the loan only for authorized uses;
- The applicant employs no more than 300 people; and
- The applicant can demonstrate at least a 25-percent reduction in gross receipts between comparable quarters in 2019 and 2020.
The maximum loan amount of a second PPP loan is two-and-a-half times the average monthly 2019 or 2020 payroll costs, up to $2 million.
Please let us know if you have any questions on this topic.
Federal Advocacy and Research Manager
American Network of Community Options and Resources