Our teammates across Bank of America are focused on delivering resources and information to help small business clients navigate what’s happening now and prepare for what’s next.
Important updates on the Paycheck Protection Program
New federal legislation extends the Small Business Administration’s (SBA) deadline to approve new Paycheck Protection Program (PPP) loan applications from March 31 to May 31, 2021, or sooner if funding runs out. The legislation also enables the SBA to continue processing pending PPP loan applications for an additional 30 days after its May 31 deadline; however, lenders must complete processing and submit all applications to the SBA by May 31.
With this program extension, Bank of America is now accepting new applications for first draw and second draw PPP loans.
Get started by selecting:
• First draw PPP loan application – for eligible borrowers who have not previously received a PPP loan
• Second draw PPP loan application – for eligible borrowers who received a PPP loan in a previous round of PPP lending through Bank of America
In order to provide the necessary time for processing loan applications prior to May 31, and as long as funding remains available:
• We will accept new PPP loan applications until 11 p.m. ET on May 14
• Applicants must provide all required supporting documentation (this does not include promissory notes) by 11 p.m. ET on May 24 in order for their loan application to proceed. If an applicant has already received from us an earlier deadline to submit required documentation, all documentation must be submitted by that earlier date.
• We will discontinue all loan application processing at 11 p.m. ET on May 28 or when funding becomes no longer available, whichever comes first
Application process for sole proprietors, independent contractors and single-member LLCs
In March, the SBA released new guidance allowing sole proprietors, independent contractors and single-member LLCs that file an IRS Form 1040 Schedule C to use either gross income or net income in calculating the amount of their requested PPP loan.
Given the extension of the PPP application window, the possibility that federal funding may run out prior to the May 31 deadline, and the time required for us to process applications before submitting them to the SBA, please note:
• Eligible sole proprietors, independent contractors and single-member LLCs who wish to apply for a first or second draw PPP loan using net income are welcome to apply at any time using our existing loan application, as long as we are accepting new applications
• We plan to launch a new PPP loan application in late-April, which will provide eligible sole proprietors, independent contractors and single-member LLCs who file a Schedule C the option to apply for a first or second draw PPP loan using gross income. Eligible clients can choose to wait and apply using gross income in late-April, although program funding is limited and may not be available at that time.
For the latest details on PPP, including program rules and requirements, please visit the SBA website.
All information and correspondence related to PPP will occur online and through email, including the application process, submission of required documents and follow-up correspondence. Visit our FAQ page for more details.