News

The PPP Extension Act, signed by President Joe Biden on Tuesday, extends the deadline for PPP applications to May 31, 2021. The Act also provides that the SBA will have until June 30, 2021 to process applications. While applicants now have an additional two months to apply for a first or second draw PPP loan, the Act does not provide any additional funding for the current round of PPP. As of March 28, 2021 the SBA has disbursed around $734 billion of the $806 billion appropriated by Congress to the program.

The extended Paycheck Protection Program (PPP) is of particular interest to those in the tourism industry because it addresses specific issues businesses like hotels, restaurants and bars are facing and have faced during the pandemic. Below is a summary of two recent articles that explain the loan program in more detail.

The Paycheck Protection Program (PPP) has been extended and expanded to provide more funding for first-time borrowers and to allow some existing borrowers the opportunity to receive additional help. The Economic Aid Act, which become law late last year, allocates $284 billion in additional funds to the program and authorizes the Small Business Administration (SBA) to guarantee loans through March 31, 2021. On January 6, 2021, the SBA provided guidance in the form of Interim Final Rules (First Draw IFR) (Second Draw (IFR) to address eligibility and applications to the expanded program.

Last week the U.S. Small Business Administration released revisions to the Paycheck Protection Program – First Interim Final Rule in response to the enactment of the Paycheck Protection Program Flexibility Act (Flexibility Act), H.R. 7010.

On May 28, 2020, the House of Representatives passed the Paycheck Protection Program Flexibility Act (Flexibility Act) by a vote of 417 to 1. The Act provides additional flexibility to borrowers in using PPP loan proceeds and qualifying for forgiveness. The Senate is expected to consider the legislation later this week although a competing bill is also pending in the Senate.

The Small Business Administration (SBA) recently issued a Loan Forgiveness Application (Form 3508) for borrowers with Paycheck Protection Loans. Below is a summary of some of the key considerations, issues and questions as borrowers and lenders work through the forgiveness process.