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Paycheck Protection Program Has Been Extended

The Paycheck Protection Program (PPP) was originally introduced in the Coronavirus Aid, Relief, and Economic Security Act (CARES) in 2020 as a direct effort to help relieve businesses of some of the financial hardships that were brought on by the ongoing pandemic. The CARES act ended in December of 2020 and we then saw the Consolidated Appropriations Act (CAA) of 2021 extend and amended some of the original components of the CARES Act.

The latest relief package to extend and amend existing COVID relief measures was the American Rescue Plan Act (ARPA) in March of 2021 and with that, the Paycheck Protection Program was set to expire on March 31, 2021. The House of Representatives passed the PPP Extension Act of 2021 on March 16th, 2021 and it eventually was approved by the Senate on March 25th, 2021.

The act extends the PPP program through May 31st, 2021. Additionally, it will provide the Small Business Administration (SBA) an additional 30 days to process pending applications after the new deadline.

Businesses that are covered through the PPP include small businesses, eligible nonprofit organizations, and certain other employers if they employ fewer than 500 employees. Businesses that employ more than 500 employees may also be eligible if they meet the SBA’s standards for their specific industry. Additionally, businesses that already received a PPP loan may be able to receive a second one if they: 

  • Have no more than 300 employees.
  • Used the first loan to the full amount only for authorized uses. 
  • Can show at least a 25 percent reduction in gross receipts between comparable quarters in 2019 & 2020. 

The current and past legislation introduced to assist businesses that were affected by COVID-19 is part of an ever-changing landscape and it is encouraged that employers consult with a trusted partner to see what they are eligible for and how to properly apply for any aid available to them. 

As the pandemic continues, the conversation about what else is needed is still ongoing amongst lawmakers, and amendments and additions may be possible through 2021.

Is there anything Payroll Systems can help you with as you accommodate rapid legislation changes? Reach out and talk to us about the easy-to-scale solutions you need for your business.

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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.