TLF Update: SBA to Extend PPP Loan Deadline and Increase EIDL SizeMar 26, 2021
ALBANY, N.Y. (March 26, 2021) – While the U.S. Small Business Administration (SBA) is frequently making changes and updating its funding and loan options for businesses across the United States, TLF’s team of business attorneys are quick to provide their expertise and guidance for clients and business owners in order to best navigate these ever-changing times. Be sure to check back here for the latest updates and changes.
The SBA: Economic Injury Disaster Loan (EIDL) Increases
Some loans approved prior to the week of April 6, 2021 will be eligible for an increase based on new loan maximum amounts announced March 24, 2021. Businesses that received a loan subject to current loan limit do not need to submit a request for an increase at this time. SBA will reach out directly via email closer to the April 6, 2021 implementation date to provide more details about how businesses can request an increase.
If an applicant accepted a loan for less than the full amount originally offered, the application will have up to two years after the date of the loan promissory note to request to request additional funds. Applicants may continue to request additional funds even after the application deadline of December 31, 2021.
The SBA Extends PPP Loan Deadline
On Thursday, the Senate voted in favor to extend SBA’s Paycheck Protection Program Loan application deadline from March 31st to May 31st. The legislation awaits to be signed into law by President Joe Biden. The bill gives small businesses more time to apply for first-draw or second-draw loans, as well as allows lenders more time to process the loan applications.
*For more information about the loan program, visit Coronavirus Relief Options (sba.gov).
QUESTIONS? Check out TLF’s webinar on the second round of PPP below and on our Youtube Page.