Two weeks before the Paycheck Protection Program (PPP) is set to expire, Congress is working to extend the popular bipartisan program.
The House voted 415-3 Tuesday night to extend PPP through May 31. The program is set to expire March 31 without additional action. In addition, the House extension would provide the Small Business Administration (SBA) an addition 30 days to process loans submited by the May 31 deadline.
Through March 14, SBA has approved more than 7.8 million PPP loans totaling $703.8 billion.
Members of the House Small Business Committee expressed their support for the extension and urged quick approval in the Senate.
“Based on recent economic data and the demand for PPP loans, it is clear that small businesses still need support,” Committee Chairwoman Nydia Velazquez (D-N.Y.) said. “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 is not cut off.”
Committee Ranking Member Blaine Leutkemeyer (R-Mo.) thanked Velazquez on the House floor during debate working working “in a collaborative manner with me” to ensure passage.
“As America begins to open up for business and vaccines become more widely distributed across the country, we must provide targeted relief for small businesses that need it most,” Leutkemeyer said. This bipartisan legislation provides a commonsense extension to the Paycheck Protection Program and the tools for Main Street USA to contribute to their local economies once again.”
The program, launched April 3, 2020, was funded with $349 billion. SBA stopped accepting applications 13 days later when the original funding was tapped. Since then, Congress approved an extension which included $320 billion in April, and was extended in June and July.
In December, Congress restarted PPP, adding $284 billion to its funds and proving an opportunity for business to take a second PPP loan if they received and repaid their first.
“I amm glad our House colleagues came together to pass this commonsense bill,” Rep. Young Kim (R-Calif.) said, “and I urge the Senate to take swift action to support our small businesses. I will continue to do all I can to get through the gridlock and get things done for my constituents.”
