While the extension gives borrowers a reprieve, they shouldn’t delay in getting their applications in. The Economic Aid Act extended the authority to make PPP loans with an additional $284 billion in subsidy and modified rules for PPP loan eligibility and forgiveness. In addition, the American Rescue Plan Act provided an additional $7.25 billion in subsidy. In the 2021 rounds of PPP, as of March 21, the SBA has approved 3.1 million loans totaling $195.7 billion in loans with approximately $79 billion left and interest in the program isn’t slowing down. As a result, the program could run out of funding early if application approvals continue at their current rate.
“The extension of the PPP loan deadline to May 31, 2021 will serve as a lifeline for small business owners; as it was virtually impossible for banks to process all loans due to immense number of applicants. We are encouraging small business owners to complete their applications in a timely manner,” says Phil Andrews, President, Long Island African American Chamber of Commerce, Inc. (www.liaacc.org) – New York State’s largest African American Chamber and New York District Office of the United States of America 2019 Small Business Champion for 14 counties in Downstate, New York which includes New York City, Long Island and the counties of Duchess, Orange, Putnam, Rockland, Sullivan, Ulster and Westchester.
