PPP Deadline Expected to Extend

Good news on the PPP Relief front. This Tuesday, the House of Representatives successfully voted to extend the PPP deadline from March to May 31st—an initiative that 78% of you supported in our recent poll. The extension, if passed, also gives the SBA an extra 30 days to process the loans. 

So what does this mean for you?

Read on to find out what we currently know about the extension, how it can benefit you, and where you can still apply.

What You Need to Know About the Extension 

Here’s the high-level overview of what’s going on on Capitol Hill, and how it’ll impact your business.

Support from all sides: First, the proposed PPP extension was championed by both Democrats and Republicans in the House, with only three reps voting against it.

Clearly, Congress sees the need and wants to ensure that the billions in remaining relief go to those hit hardest by the pandemic.

Up next, Senate approval: The final step in the legislative process is for the Senate to pass the extension. Though it seems likely that it will pass by a wide margin, we’ll keep you posted when the vote is announced.

What the PPP Extension Means for You

1. More time for all SMBs to apply 

The major win from this potential extension would be allowing you and your lender more time to navigate the tricky application process and to use new PPP guidelines. 

And that’s a big deal because 74% of you expressed some form of discontent regarding the PPP process. Luckily, the 60-day extension can help improve the process and get you the money you deserve.

Before they announced the extension, many lenders were closing up shop well ahead of the March 31st deadline due to last-minute guideline changes that further complicated the process. 

Though most lenders haven’t updated their deadlines yet, they will likely re-open their portals to adjust to the extended timeline.

2. More money for solos & contractors 

The extension allows more lenders to actually adopt the new guidelines released earlier this month. If you’re a sole proprietor, self-employed, or an independent contractor, this is a game-changer. 

These new guidelines allow the reporting of gross income over net profit for solos, multiplying the amount of money they’re eligible to receive. If the PPP extension passes, solopreneurs will have more time to apply with lenders who are honoring the new guidelines.

Big banks such as Bank of America and Chase, who shut down their portals without adopting the new guidelines, may start to accept applications using the new formula.

3. More time for restaurants to evaluate their options

If you’re a restaurant owner, there’s even more good news. The American Rescue Act set aside $28.6 billion of COVID relief funding just for restaurants called the Restaurant Revitalization Fund (RRF). 

Generally, RRF provides restaurants with grants that total their revenue loss due to the pandemic through a simple calculation: the difference between their 2020 gross receipts and their 2019 gross receipts. 

One caveat: The amount of money you can receive from this grant is reduced by the size of your PPP loan(s). So if you’ve received two PPP loans, that amount will be deducted from your potential RRF grant amount.

Depending on your business, the RRF grant may be more beneficial for you than the PPP loan, but check in with your accountant before you apply for either. 

Though the RRF portal is not open yet, it should be within a few weeks.

Haven’t Applied Yet? Here are 15 Lenders to Try

At the moment, these 15 lenders are still accepting applications. But, due to the proposed extension, lenders will likely be changing their policies. Be sure to check the linked lender site to get the most up-to-date information.

Either way, these are the lenders who were willing to accept applications close to the final deadline, and they seem eager to help get you the funds you need.

Banks

• PNC: March 22
• Citizens Bank
• Pinnacle Financial Partners 
• Cross River Bank
• Zions Bank
• Truist Bank
• Wells Fargo Bank: March 23

Online Lenders

Online lenders are adapting more efficiently to the recent changes and are a great resource to get funding fast. Check these out:

• SmartBiz 
• Funding Circle 
• BlueVine 
• Fountain Head 
• Harvest Small Business Finance 
• Lendistry 
• Liberty SBF
• Newtek
• Square Capital: Only existing Square customers eligible

Local Lenders

Working with your local bank is key!

One thing we know from the last round of PPP? Go with a local lender whenever possible. You’ve had much more success with local lenders than with national ones.

Here are some tips from members who have successfully gone through the process:

“Incredibly easy online process with my local credit union.”—Travis Apollo Haage, ApolloWorks Financial

“Working with your local bank is key!” —Kristina Rugh, HLC Bookkeeping & Office Services

“If you have an existing account in a smaller local bank, that is the place to go. Try to get the loan from those if you don't, and, possible, open an account with them.”—Sylvia Andrade, Hi-Desert Interpreters

So if you have a relationship with a local bank, reach out ASAP. If you need help finding a local lender, try SBA’s Lender Match tool.

A big win for small business 

All in all, the proposed extension is excellent news, especially if you're impacted by the recent change in guidelines. Hopefully, by giving lenders more time to work out the kinks in the new process, you'll be able to get your hands on the billions still up for grabs. 

If you haven’t applied for PPP yet, will the extension change your mind? Let us know in the comments.

Still have questions about PPP? Check out these articles that answer your most pressing COVID relief questions:

• The Latest Updates on New PPP Guidelines
• PPP Loan Forgiveness Under $150k
• PPP Loan Forgiveness for the Self Employed
• Your Top PPP Questions, Answered by the SBA