Latest PPP & EIDL News: Application, Payment Deadlines Extended
The latest PPP & EIDL news is good for those who are applying for either loan. And if you’ve already received a loan, there’s good news for you, too.
PPP Deadlines Likely Extended
This week, the House passed a bill extending the Paycheck Protection Program loan application deadline from March 31 to May 31, 2021. The Senate is almost certain to finalize the bill after near-unanimous approval in the House. The bill doesn’t just extend the application deadline by 60 days. It also gives the Small Business Administration an extra 30 days after the deadline passes in order to approve applications. The SBA has struggled to deal with a backlog of applications while trying to prevent fraud. The bill should land on the President’s desk to sign well before the March 31 deadline.
Sole Prop Businesses Benefit
More good news, this time for sole proprietors (Schedule C tax filers). A rule change in early March lets those sole props use their gross income to figure the amount of the loan. Previously, the SBA used net income, which is usually quite a bit lower.
Now small businesses can wait to start paying back their Economic Injury Disaster Loan (EIDL). EIDL borrowers who applied in 2020 now have 24 months from the date of the loan to start paying it back. Previously that deadline was 12 months. Borrowers who apply in 2021 have a later start to pay back the EIDL, too. Instead of 12 months, they have 18 months from the date of the note.
The SBA is currently still accepting new applications for EIDLs.
This link takes you to the EIDL application portal.
The SBA has a PPP Frequently Asked Questions page that includes the latest policy changes.
Lastly, you can learn more about our services here!