Update on PPP Loan Funds Availability
April 8, 2021
The Consolidated Appropriations Act of 2021 (the Act) made an additional $284 billion available to the Paycheck Protection Program (PPP) funding. The Act extended the borrowing window to March 31, 2021 or until the funds ran out. The extension of the PPP program came with new SBA logic checks that caused up to a 30% application rejection rate which greatly slowed the application process. In response to the application delays, the borrowing window was extended until May 31, 2021 or until the funds run out.
The PPP is expected to exhaust its available funds by the end of April, well short of its legislative sunset. In addition, some lenders may close their lending windows prior to April 30th if their application back logs will extend to the end of April.
Don’t delay if you are considering a first or second draw PPP loan.