Businesses Get More Time to Apply For PPP Loans

Posted on 01. Apr, 2021 by in COVID-19, PPP, Small Business Tips

Legislation provides other business relief provisions

Here’s what you need to know about the Paycheck Protection Program (PPP) loans and other business relief provisions of the recently-passed American Rescue Plan Act.

PPP loan application deadline extended. 
The deadline to apply for PPP loans is now May 31, 2021.

Sick leave extended. Businesses providing sick leave for COVID-related reasons, might get reimbursed for the sick pay through a tax credit.

  • Businesses which voluntarily provide sick leave through September 30, 2021 qualify for the credit. There are limits for each employee. However, for employees who took 10 days of sick leave in 2020 using this same provision, they can take another 10 days beginning April 1, 2021.
  • Refundable tax credits are available through September 30, 2021.
  • Sick leave taken to get COVID testing and vaccination and to recover from the vaccination are now covered reasons.
  • Self-employed workers are also eligible for these benefits.

Family Medical Leave Act Provisions extended.

  • Additional coverage is now available through September 30, 2021.
  • Qualified wages for this provision move to $12,000 (up from $10,000) however the credit was not increased.
  • The Family Medical Leave Act also applies to the self-employed.

Big increase in Employee Retention Credit

  • In 2021, businesses can get up to a $28,000 tax credit per employee. This is up from a $5,000 maximum credit in 2020. Businesses can claim this credit through Dec. 31, 2021.

There are many more provisions in the close to $2 trillion dollar spending package, including money given to states. This is a new 500-plus page piece of legislation for all to digest. More clarifications will be forthcoming from the IRS and other sources.


Comments are closed.