News

Businesses grappling with the coronavirus pandemic received additional consideration as part of the American Rescue Plan Act (ARPA). However, much of that additional aid left many with questions and concerns. Especially considering the original deadline for Paycheck Protection Program (PPP) loan applications was set for March 31, 2021, just weeks after the American Rescue Plan Act (ARPA) was passed.

To remedy this, the U.S. Senate voted last Thursday to extend the Paycheck Protection Program (PPP) loan application deadline to May 31, 2021, as additional application time was not part of the American Rescue Plan Act (ARPA). Now signed by President Biden, the PPP Extension Act grants two additional months for businesses to apply and 30 days beyond May 31 for the SBA to process applications, USA Today reports₁.

The PPP is not the only avenue for businesses seeking aid, and the Economic Injury Disaster Loan (EIDL) program has also met with updates in recent weeks. First, the SBA announced earlier this month that recipients of any disaster loan, including COVID-19 EIDL will not have to make payments until 2022, according to the Journal of Accountancy₂. Moreover, EIDLs that were in regular servicing status as of March 1, 2020 were granted an additional 12-month deferral for principal and interest payments. This new deferral allows borrowers until March 31, 2022 to resume regular payments₃.

In the most recent press release from the SBA, the EIDL is being updated once again. Beginning the week of April 6, 2021, the EIDL lending limit will be raised from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000. For those with questions about seeking an increase to their loan under the current limits, the SBA says it will reach out directly via email and provide more details about how businesses can request an increase closer to April 6. Therefore, they ask recipients to refrain from submitting a request at this time for additional funds.

The MICPA will continue to track new developments regarding the PPP and other business relief measures.

1. King, Ledyard. “PPP Small Business Loan Program Deadline Extended…” USA Today. 25 Mar. 2021. Accessed on 29 Mar. 2021.
2. Drew, Jeff. “SBA Raises COVID-19 EIDL Loan Limit to $500,000.” Journal of Accountancy. 24 Mar. 2021. Accessed on 29 Mar. 2021.
3. Drew, Jeff. “SBA Defers EIDL Payments Until 2022.” Journal of Accountancy. 15 Mar. 2021. Accessed on 29 Mar. 2021.