Authored by Michael Wronsky
On March 25, 2021, Congress passed the PPP Extension Act of 2021 (the Act), which keeps the loan program open through June 30, 2021. It was set to close March 31. The loan application deadline is also extended, but only to May 31, 2021. President Biden is expected to sign the Act into law.
The extension gives borrowers more time to apply for the popular loan program designed to assist businesses with weathering the continued economic effects of the coronavirus pandemic. While the program was formally extended to June 30, the Act prohibits the Small Business Administration (SBA) from accepting new first- or second-draw loan applications during June. For the remainder of the month, the SBA is only to process applications it has received from lenders before June 1, 2021.
We encourage you to reach out to your Baker Tilly advisor regarding how this may affect your tax situation.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.