With only $66 billion remaining in the Payroll Protection Program (PPP) loan pool, the Small Business Association (SBA) and advocacy groups have warned that funds are likely to run out long before the extended May 31 deadline to apply.
The Biden administration and Congress recently extended the deadline to apply for PPP loans to ensure that small businesses and the self-employed, many of whom desperately need the funds, would have more time to get the funds. Unfortunately, Congress did not increase the available PPP funds. The result? Many believe the funds will run out in the next week or so…long before the new May 31 deadline, leaving many of those who most need the money unable to get it.
To further complicate this, Congress is on recess for another week, so there isn’t going to be time to provide for additional funds for the program.
Senate Small Business Chair Ben Cardin (D-Md.) is in favor of increasing funding for the program and has been engaged with a bi-partisan group in Congress to do so. However, with funds running out before Congress returns, it is likely to be too late for many of those counting on getting their loans as soon as possible.
What to do now?
Small businesses and sole proprietors, including those in the gig economy, should work with their financial advisors and financial institutions to submit their applications as soon as possible to improve their chances of getting their PPP loans before the funds run out.
By Mark Friedlich, Esq., CPA.