Last Thursday, March 25, the Senate approved legislation previously approved in the House of Representatives (H.R. 1799) that will extend the final submission date to May 31, 2021 and the time for the Small Business Administration to process the loans to June 30, 2021.
President Biden is expected to sign the legislation this week.
The Paycheck Protection Program was scheduled to end on March 31, 2021.
This extension is appropriate considering the Small Business Administration issued new Paycheck Protection Program rules on March 3, 2021 allowing self-employed individuals who file Form 1040, Schedule C to calculate their maximum loan amount using gross income instead of net profit. It would be impossible to submit all of applications for individuals who previously didn’t qualify by March 31.