On Thursday, March 25, 2021, the U.S. Senate passed the Paycheck Protection Program (PPP) Extension Act of 2021. The Act, which already passed in the U.S. House of Representatives and will move to the White House for President Biden’s signature, extends the deadline for Paycheck Protection Program applications until May 31, 2021. In addition, it provides the Small Business Association (SBA) an additional 30 days beyond May 31 to process applications which are submitted by the new deadline.
Other SBA pandemic funding program updates:
Shuttered Venue Operator Grants (SVOG)
The SVOG program was created by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act which was signed into law on December 27, 2020 and includes over $16 billion in funding. Eligible operators may qualify for grants totaling 45% of their gross earned revenue up to a maximum of $10 million per grant. The SBA has announced they expect the application process to open on April 8, 2021 and has released a list of Frequently Asked Questions, but has not yet provided an application form. The SBA will hold a free informational webinar to outline the application process from 11:30 a.m. to 1 p.m. PT on Tuesday, March 30.
Restaurant Revitalization Fund (RRF)
The RRF was created by the American Rescue Plan Act which was signed into law on March 11, 2021 and includes over $28 billion in funding. Eligible restaurants may be eligible for grants equal to their pandemic-related revenue loss up to a maximum of $10 million per entity. The SBA has not released any information on the RRF yet; however, in Senate testimony on March 25, 2021, an SBA official indicated the SBA was planning to begin posting RRF information, such as guidance and required documentation, over the next seven to 10 days. After that, the SBA would begin accepting applications based on prioritization established in the American Rescue Plan Act.
For the latest information on PPP, or to ask questions, please reach out to BPM’s Economic Recovery & Emergence Task Force member Brett Hazlett.