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PPP Date Extension

UPDATE 5/8/2021

As of 5/4/2021, the SBA has stopped accepting PPP applications from most lenders. The SBA announced the general fund is out of money. However, there are funds set aside that are available for community financial institutions (CFI). CFI’s usually work with businesses in underserved areas. If you qualify and have not applied for PPP 2, I recommend doing a web search to find if there is a CFI near you. 

As of 3/27/2021

PPP Round 2 Date Extension

What’s being referred to as PPP 2 has been extended. The original ending date of March 31st has been extended to May 31st. And includes an additional 30 days after May 31st for banks and the SBA to continue processing loans.
 
If you received PPP 1 in 2020 and meet the revenue qualifications to file for PPP 2 in 2021 you have some additional time to file. (See the full article on PPP 2 for revenue qualifications.)  However, it’s best to not wait any longer.
 
If you did not receive PPP 1 in 2020 and applied for the first draw in 2021 you can potentially apply for the second draw as well. You will need to meet the revenue qualification and have at least 8 weeks between when the first draw was deposited into your bank account and when you apply for draw 2.
 
This will be beneficial for Schedule C filers that did not qualify prior due to a negative net income and now qualify by using line 7 on schedule C.

Schedule C Filers NEW calculation

Schedule C filers may now apply for PPP using gross receipts (line 7 on schedule C) rather than net income.

This is big news for self-employed individuals.  Especially if you were unable to apply for PPP prior due to a negative net income. 

You may now apply using Line 7 on your schedule C (typically from 2019) divided by 12 and then multiplied by 2.5.  In the calculation, if line 7 is more than $100,000 you may only use $100,000.  So the max amount of a loan is $20,833.

Keep in mind, if you are applying for PPP during this open period and did not receive a PPP loan prior you will mark Draw 1 on the application.  Even though this round is being called PPP Round 2, you won’t apply for draw 2 initially. 

If you found this article helpful leave us a comment. We enjoy hearing from you. 

~ Brandon & Christi are successful business owners who enjoy traveling and making a mess in the kitchen with their two daughters. They reside in the Dallas, TX suburbs and work with businesses throughout the U.S. 

The article is for informational purposes only and should not be construed as business, accounting, tax, or legal advice. Details are from the latest PPP 2 legislation as of the date of this post. Details are subject to change without notice. It is wise to seek financial counsel before proceeding with any loan application. 

Copyright © 2021, Brandon & Christi Rains, Rains Group LLC DBA The Sensible Business Owner, ALL RIGHTS RESERVED

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This Post Has 2 Comments

  1. Arlynn Huntsberry May 8, 2021 Reply

    I want to apply for PPP2 loan. I had a PPP1 loan and had a Loan forgiveness. Most banks I call are no longer accepting applications. What types of leners will accept applications thru May 31, 2021

    1. admin May 8, 2021 Reply

      Hi Arlynn, The SBA announced this week that the general fund for PPP is out of funds. However, there are still funds available for community financial institutions. These institutions usually work with underserved communities (CFI). If you qualify, I recommend doing a web search for a CFI near year. Keep in mind, PPP 2 does require a business to meet the income reduction requirement. – I hope this helps. Christi

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