An extension to the Paycheck Protection Program (PPP) was passed by the Senate on Thursday, sending the bill to President Joe Biden with less than one week before the program is set to expire.
The “PPP Extension Act of 2021” will allow the Small Business Administration (SBA) to accept loan applications until an extended deadline of May 31. SBA will also be able to process pending applications for up to 30 days after the new deadline.
Biden is expected to sign the bill, which passed the Senate by a 92-7 vote after passing the House by a 415-3 vote March 16.
The act was introduced to in the Senate by Sen. Ben Cardin (D-Md.), chairman of the Senate Small Business Committee, in addition to Sens. Susan Collins (R-Maine) and Jeanne Shaheen (D-N.H.).
“It is clear that small businesses and nonprofits need access to PPP beyond March 31, so it was vital that the Senate acted to keep the program open,” Cardin said during his speech on the Senate floor. “We must now continue working in a bipartisan manner to fine-tune PPP to support as many small businesses as possible through the remainder of the program.”
Cardin, Collins and Shaheen, along with Sen. Marco Rubio (R-Fla.), authored the PPP last year, which became law as part of the Coronavirus Aid, Relief, and Economic Security Act.
“The PPP has been an enormous success, sustaining millions of small businesses and tens of millions of jobs,” Collins said. “Since last spring when we created the PPP, members of Congress on both sides of the aisle have repeatedly taken action to increase funding and flexibility for the program. I am pleased that Congress came together once again today to help more small businesses to access this lifeline by extending the deadline to apply to receive these forgivable loans.”
In 2020, more than 5 million small employers received forgivable PPP loans. The four PPP “architects” advocated to include $284.5 billion in the December COVID-19 relief package to reopen the program. According to the latest SBA data, 3.1 million PPP loans have been approved in 2021, totaling nearly $196 billion.
“Our hardest-hit small businesses are depending on an extension of the PPP to keep the lights on and continue operating beyond March 31,” Shaheen said. “With the PPP deadline fast approaching, I am very pleased the Senate took action to pass my bipartisan legislation with Sens. Collins and Cardin that will give small businesses additional time to apply for PPP loans. I urge President Biden to sign this bill into law as soon as possible to ensure Main Street continues to have access to this crucial relief over the next several months.”
Reps. Nydia Velázquez (D-N.Y.), Blaine Luetkemeyer (R-Mo.), Carolyn Bourdeaux (D-Ga.) and Young Kim (D-Calif.) introduced the bill in the House. The bill was endorsed by nearly 100 organizations, including the National Federation of Independent Businesses and the U.S. Chamber of Commerce.
