PPP Deadline Extended to 5/31

March 26, 2021

Today I received this from the bank our association does business with.  M&T is pretty good about communicating updates related to the Paycheck Protection Program and other recent emergency loan and grant programs.  I just thought I would share it  with everyone sine it discusses coming changes that would apply regardless of the bank you use.

If you need a hand with PPP issues or any other problem at the top of your worry list, I am here to help so don’t hesitate to reach out!  I’m at 518 461-8200.

M&T Bank

We are pleased that President Biden is expected to sign the Paycheck Protection Program (PPP) Extension Act shortly, extending the application deadline through May 31, 2021. There are some notable changes to the program we think you should know about and have outlined them in this update.

Good news for “Schedule C” filers
Certain Schedule C filers (self-employed, independent contractor, sole proprietor, single member LLC (self-employed individual), and qualified joint venture (self-employed individual)) can now use “Gross Income” (line 7 on the 1040 Schedule C) instead of “Net Profit” (line 31 on the 1040 Schedule C) to calculate their PPP loan amounts. This means that if you had refrained from applying or were ineligible as a result of your Schedule C Net Profit, you may now be eligible or eligible for more. This rule is not retroactive to disbursed PPP funds. However, if you submitted an application and have not yet received fund disbursement, you may withdraw your application and reapply.

Expanded eligibility rules for tax-exempt groups
If you are a non-profit, it may be worth exploring the PPP. The extended program now includes the following 501(c) groups:

  • 501(c)(5) labor organizations
  • 501(c)(7) social and recreation clubs
  • 501(c)(8) fraternal benefit societies

Additional Important Information for non-profits
These additional tax-exempt groups cannot employ more than 300 employees per location or spend more than $1 million annually or 15% of their time on lobbying activities:

  • 501(c)(3) groups with as many as 500 employees per physical location to participate without further restrictions
  • Religious educational groups that might otherwise be barred under SBA rules would be permitted; however, 501(c)(4) social welfare groups are still prohibited

Applying through the M&T online application portal
We are preparing our application now with these important changes and anticipate opening in early April. We will communicate as soon as we are ready to open our application portal for submissions.

In the meantime, additional information on program eligibility requirements and how to apply for a PPP loan with M&T can be found on our Be Informed page.

If you are considering a PPP loan, our team would love to help.