Update 4: Paycheck Protection Plan (PPP) May 31, 2021 Extension & Processes

There is so much inside the American Rescue Plan for Small Businesses and other Federal & State support programs that we are breaking them down into updates by program.

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UPDATE 4

With the American Rescue Plan an additional $7.25 billion was added for the Paycheck Protection Program, including to expand eligibility to additional nonprofits and digital news services.

This Thursday, the Senate passed the House version of a bill to extend the Paycheck Protection Program (PPP) application deadline to May 31, 2021, and President Biden is expected to quickly sign this into law. With the current March 31 deadline quickly approaching, this extension will give Coloradans more time to submit their PPP loan application.

What has changed or evolved with PPP?

SBA has made additional changes to open the PPP to more underserved small businesses than ever before, publishing an Interim Final Rule on March 8, 2021 and new FAQ with this detail on March 12, 2021. WATCH this New Video!

High-level changes for small businesses include:
1) Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants. You can use net verses gross – worth now applying.

2) Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal.

3) Eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP; and

4) Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

What you need to know and do:

1) This PPP May 31, 2021 extension of the deadline will not only give businesses more time to file their application, but it may also provide sufficient time for businesses that have just received their first draw PPP in 2021 to have time to qualify for a second draw PPP.

2) There is no specific language that precludes a business that receives a first draw PPP in 2021 from receiving a second draw PPP; however, there has been a technical issue that has essentially blocked this from happening. If President Biden signs the PPP program and it is extended many 2021 first draw PPP businesses will have time to apply for a second draw PPP. When exactly they should apply will depend on the specifics of the business. Ask your banker.

3) Work through your local SBA approved bank to help you access these funds and assist in full forgiveness steps. Apply for 1st or 2nd draw PPP.

Application Prep & Bankers:

This grant application was scheduled to close March 31, 2021 now expected to be extended to May 31, 2021.

First Draw Info & Application:
a) For those who have never applied for PPP.
b) How to Calculate First Draw PPP Loan Amounts.
c) View this YouTube video to assist you created March 6, 2021

Second Draw Info & Application:
a) for those who already received PPP the first time.
b) How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide
c) View this YouTube video to assist you created March 6, 2021

Our Local Banks Funding PPP – Ask Your Local Banker for Unique Application if applicable & Tips
Bank of Colorado – find a location

Collegiate Peaks Bank – Salida, Buena Vista find your location.

Community Banks of Colorado – Buena Vista, Leadville, Salida & more find your location.

High Country Bank – 719-530-8886 Ron Fore Loan officer 719-530-8823 and Rich Mancuso Loan Officer – find your location.

Legacy Bank – Dave Reyher 719-395-5873

Pueblo Bank & Trust – find a location

TBK Bank – Buena Vista & Fairplay find a location

Other PPP Bank funders – find your lender

Download this information and links in a PDF file here.

Sign up for no cost confidential consulting to help you on your journey click here. Or reach out to your CPA or Banker.

American Rescue Plan for Small Businesses

1) $7.25 billion additional for the Paycheck Protection Program, including to expand eligibility to additional nonprofits and digital news services. NOW extended to May 31, 2021.

2) Additional funds are allocated for the Shuttered Venue Operators Grant program (SVOG), and now allows businesses to apply for BOTH a PPP loan after Dec. 27, 2020 and the SVOG.

3) $15 billion additional for Targeted Economic Injury Disaster Loan Advance (EIDL) payments, including NEW $5 billion for Supplemental Targeted EIDL Advance payments for those hardest hit.

4) The National Restaurant Association hosted a webinar view here that discusses the Restaurant Revitalization Fund (RRF) which will feature $28.6 billion for restaurants with 20 or fewer locations, and will be administered by the U.S. Small Business Administration (SBA).

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