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?
One thing we know from the last round of PPP? Go with a local lender whenever possible. We've had much more success with local lenders than with national ones. Contact the bank where you have your business account to apply. You can are also check with your business accountant who may offer their services to help you apply. Lastly, you can contact Business Outreach Center Network (BOC) at http://www.bocnet.org/boc/home.asp for help, as well.
Click here to join the ZOOM meeting on March 31st at 7pm
Dial in: 929-436-2866
Meeting ID: 822 9144 4179