The PPP Extension Act of 2021 was passed by the US House of Representatives last week, extending Paycheck Protection Program loan applications from March 31 to May 31. The bill received overwhelming support from business groups and trade associations, passing 415-3. The bill is now making its way to the Senate, requiring 60 votes to pass.
House votes to extend PPP loan deadline
The bill to extend the PPP deadline has bipartisan support, but it faces several challenges. A coalition of Senate Republicans proposed a bill that restricts the Small Business Administration's ability to distribute PPP funds. According to Rollcall, Senate Majority Leader Chuck Schumer said, "We hope that the Senate will pass the bill easily, that no one will delay it." Schumer also promised that this week wouldn't end without passing the PPP loan extension, reassuring that they will complete the task once more.
Following the House passage of the PPP Extension Act, a group of almost 100 trade groups and chambers of commerce wrote to the bill's sponsors, thanking them for their "bicameral leadership and decisive bipartisan action."
"Nearly a year into the COVID-19 pandemic, the small business sector's continuing liquidity problems are acute," the letter states. "This is particularly true for those companies constrained by drastic capacity constraints and other vital health and safety protocols in place to protect the environment, customers, and employees from COVID-19."
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PPP loan extension now awaits in Senate
The National Association of the Remodeling Industry, the National Association of Home Builders, and the Associated General Contractors of America are among the organizations that signed the document, as per familyhandyman via MSN. They also listed some problems that continue to plague the PPP loan in the letter.
The House of Representatives passed a bill extending the deadline to apply for a PPP loan to May 31 by a virtually overwhelming vote as the new March 31 deadline approaches. "As of last week, over 30% of the allocated funds for this round of PPP is still available," said Mikel Williamson, president, and CEO of Happy State Bank.
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Small business groups have pushed the extension to allow lenders more flexibility to incorporate several improvements proposed to the scheme under the new administration. "One of the requirements of the March 31 deadline was that it be processed by that date. The deadline is May 31, but it only has to be filed by then," said Shane R. Groff, a company analyst at WTAMU's America's SBDC.
The SBA will have until June 30 to process applications under the bill. Since being mocked for encouraging larger banks and corporations to scoop up the majority of the initial contributions, the scheme has continued to change its policies and procedures to make funds more accessible to small businesses. These improvements, however, have resulted in a decline, News Channel 10 reported.