SBA Part Quarante-Trois: Time Is NOT Up on PPP – Finance and Banking
United States: SBA Part Forty-Three: Time Has Not Run Out on PPP
To print this article, simply register or connect to Mondaq.com.
On March 30, 2021, President Biden enacted the PPP Extension Law of 2021 (the Law). The law extends the end date of the Paycheck Protection Program (P3), which was scheduled to close today.
The law extends the deadline for PPP applications from March 31, 2021 to May 31, 2021, when eligible applicants can apply for first and second draw PPP loans. The law also gives the Small Business Administration (SBA) an additional month to process requests received by May 31.
Many business groups lobbied for this extension due to maintenance code issues that applicants encountered and still experience, resulting in delays in PPP applications. It may take a few days to clear the hold codes if you can meet the code with your lender, but can take up to a few weeks if the hold code requires SBA satisfaction and approval. These hold code issues arise when an element of the PPP loan application identifies the applicant as ineligible, or there is an inconsistency or lack of information provided on the application when it is subject to review. due diligence review by the SBA.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
POPULAR ARTICLES ON: United States Finance and Banking