Finances and Taxes

The PPP Loan Was Just Extended: Here’s Why You Should Apply

Gusto Editors  
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Updated as of December 29, 2020: On December 27, 2020, President Trump signed a new bill into law called the Consolidated Appropriations Act, 2021. Within this bill there is new PPP legislation. Stay up-to-date and learn everything you need to know about PPP Round 2 here.

On July 4, 2020, President Trump signed the Paycheck Protection Program extension bill, giving small business owners another five weeks to apply for a PPP loan (through August 8th). While more than 4.8 million business owners have taken advantage of the PPP, many still haven’t applied. 

If you are considering applying but haven’t taken the leap, here are a few things you should know: 

The latest info & advice to help you run your business.

  • Over $130 billion remains in the PPP fund. 
  • If you applied but haven’t heard back, you can apply with another lender. At this point, you can’t use multiple loans (although that may change), but you can apply through multiple vendors. 
  • If you applied for a loan and got rejected, you may want to consider applying again with a different lender. Talk to your lender to understand why you were rejected; if there was an error in your application, fix it.  But, if you were denied because of eligibility requirements, you can try elsewhere. 
  • If you received your PPP loan but sent it back, you can apply again. 
  • If you don’t have a relationship with a large, established bank, be aware of the following: 
    • Many banks are now considering lending to non-bank customers; don’t assume just because you haven’t used a bank before, your application won’t be considered.
    • Credit unions, non-bank lenders, small, community banks, and FinTech organizations are offering PPP loans; find options here
  • Democrats have proposed that businesses with fewer than 100 employees be allowed to take out a second loan. Keep in mind: This has not yet been approved, but the idea is being considered.

Updated: January 5, 2021

Gusto Editors
Gusto Editors


  • Michelle Morris

    Thank you this update. I haven’t been able to find any banks or lenders still processing PPP, my personal business account stopped 6/22/20 and everyone listed has also stopped.


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