May 31 Paycheck Protection Program (PPP) Extension Reminder

Last month, Congress extended the Paycheck Protection Program (PPP) application deadline from March 31 to May 31 while granting the Small Business Administration (SBA) until June 30 to process loans. All applicants interested in a PPP loan are encouraged to apply as soon as possible.

  • PPP loans have an interest rate of 1%.

  • Loans issued prior to June 5, 2020, have a maturity of two years. Loans issued after June 5, 2020, have a maturity of five years.

  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 and 24 weeks).

  • No collateral or personal guarantees are required.

  • Neither the government nor lenders will charge small businesses any fees.

The Paycheck Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. Borrowers may be eligible for PPP loan forgiveness. A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Lender Match can help connect you with a lender. You can also view all lenders near you on a map. Use SBA’s local assistance directory to locate the SBA District Office or Resource Partner service location nearest you for questions and other needs.

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