United States President Joseph R. Biden today is expected to sign into law the PPP Extension Act of 2021 (House Resolution 1799) to extend the deadline for qualifying businesses and not-for-profits organizations to apply for forgiveness-eligible Paycheck Protection Program (PPP) federal loan funding by two months from March 31 to May 31.
The Elmhurst Chamber of Commerce and Industry was part of a U.S. Chamber of Commerce coalition, with support from the Association Society of Association Executives (ASAE) pushing for a deadline extension through December 31.
The bi-partisan legislation passed through the U.S. House of Representatives by a vote of 415-3 on March 16 and the U.S. Senate by a vote of 92-7 on March 25. A measure to amend the bill was narrowly defeated 52–48. The amendment, proposed by Sen. Marco Rubio (R-Florida) would have restricted the U.S. Small Business Administration’s (SBA) ability to prioritize certain PPP borrowers over others. If the measure had passed, it could have led to an amended bill having to be sent back for approval to the House.
The U.S. Congress first funded PPP in 2020 with $349 billion in the $2.2 trillion Coronavirus Aid Recovery and Economic Stability (CARES) Act and $310B more in the Paycheck Protection Program and Health Care Enhancement Act, both last April. Last December’s Consolidated Appropriations ACT (CCA) included $284B for PPP in a $900B stimulus package. In March, the $1.9T American Rescue Plan (ARP) added $7.25B, putting total loan funding at $914.24B.
The December 27 appropriation expanded eligibility to more 501(c) NFPs (including chambers of commerce) and broadened the number of reimbursable expenses, but the March 31 deadline limited the U.S. Small Business Administration only a 10-week window to process First Draw and Second Draw applications following two weeks of administrative organizing.
The SBA is required to process PPP applications no later than June 30.
“Based on recent economic data and the demand for PPP loans, it’s clear that small businesses still need support,” said House Small Business Committee Chair Nydia Velazquez (D-NY). “We are making progress in our public health fight against this virus, but this pandemic continues to impact communities across the country and we can’t let up on our efforts. By providing small businesses with two more months to apply and giving the SBA an additional month to process applications, we will help ensure critical support isn’t cut off.”
The SBA has approved nearly 7.6 million PPP loans worth more than $687B as of March 7, with some $92.5B eligible to be lent out.