Last week, President Biden signed the American Rescue Plan Act. The Act, which we discussed on our webinar last week, pushed additional dollars to the small business community. It also extended the employee retention credit program through the end of 2021. I’ll do a specific blog post on the Act when additional guidance is provided by the SBA, Treasury Department and IRS. Several important things are moving this week that small businesses should be aware of.
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The tax deadline for individual returns has been extended from April 15 to May 17.
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The House has passed a bill that will extend the Payment Protection Program through May 31. The program is set to close on March 31. The Senate is expected to take up the bill next week and it is expected to pass.
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In December, Congress authorized $16 billion in grants for shuttered venue operators. The program has taken the SBA months to implement. The SBA says it plans to begin accepting applications for this program in early April. This is important because the American Rescue Plan Act authorized over $28 billion in restaurant grants. How long will it take to get that program up and running?
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There is talk in Congress of allowing Schedule C filers to retroactively take advantage of the changes to the PPP loan calculations pushed out on March 3.
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EIDL Loan deferred payment programs have been extended. Loans made in 2020 will have the first payment due date extended from 12 month to 24 months. Loans made in 2021 will have the first payment due date extended from 12 months to 18 months.
Payment Protection Program Lending and Forgiveness Activity Update:
Lending Activity—As of March 14
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$704 billion has been approved (88% of total authorized, up 2% from a week ago)
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$160 billion has been approved in in 2021 for second draw loans 2021 (56% of total authorized, up 11% from a week ago)
Forgiveness Activity—As of March 11
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$2 million loans forgiven (up 100K from a week ago)
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Applications for over 55% of 2020 PPP loans have not been submitted
