By Jeff Drew, Journal of Accountancy
Updated: March 30, 2021
The Paycheck Protection Program (PPP) application deadline formally changed from March 31 to May 31 on Tuesday when President Joe Biden signed the extension into law.
The U.S. Senate had voted 92-7 on Thursday to approve the PPP Extension Act of 2021, H.R. 1799, sending the legislation to the president for his signature.
There was some drama, however. A measure to amend the bill was narrowly defeated 52–48. The amendment, proposed by Sen. Marco Rubio, R-Fla., would have restricted the U.S. Small Business Administration’s (SBA’s) ability to prioritize certain PPP borrowers over others. If the measure had passed, it could have led to an amended bill having to be sent back for approval to the House of Representatives, which had passed the original bill 415–3 but currently is adjourned.
The AICPA praised the passage of the PPP Extension Act, which extends the filing deadline for PPP applications by 60 days and provides an additional 30 days for the SBA to finish processing applications received by May 31.
In a news release, the AICPA said that the additional 60 days provided by the bill will greatly help small businesses, not-for-profits, and the CPAs that serve them complete existing PPP loan applications and file new ones. The extension act also provides the SBA time to address significant loan application process challenges, including confusing validation and error codes, delayed guidance, and changes to the PPP loan amount calculation for self-employed borrowers, the AICPA release said.