The PPP Extension Act of 2021 will give small businesses an additional two months to access the PPP
Washington, D.C.—By a vote of 92-7 today, the Senate passed the PPP Extension Act of 2021, which will help small employers retain access to forgivable Paycheck Protection Program (PPP) loans. The bill previously passed the House of Representatives by a vote of 415-3 and now heads to the President’s desk to be signed into law.
The PPP Extension Act of 2021 will extend the deadline for PPP applications for another two months to May 31, 2021, and then provide an additional 30-day period for the SBA to process applications that are still pending.
The legislation was introduced in the Senate by U.S. Senators Susan Collins (R-ME), Ben Cardin (D-MD), and Jeanne Shaheen (D-NH) and has been co-sponsored by Senators Roger Marshall (R-KS), Dan Sullivan (R-AK), Jacky Rosen (D-NV), Lisa Murkowski (R-AK), Patrick Leahy (D-VT), Ron Wyden (D-OR), Thom Tillis (R-NC), Jon Ossoff (D-GA), Shelley Moore Capito (R-WV), Jeff Merkley (D-OR), Martin Heinrich (D-NM), Rob Portman (R-OH), Amy Klobuchar (D-MN), and Joe Manchin (D-WV). The House companion bill was introduced by Representatives Nydia M. Velázquez (NY-07), Blaine Luetkemeyer (MO-03), Carolyn Bourdeaux (GA-07), and Young Kim (CA-39). The bill was endorsed by nearly 100 organizations, including the NFIB and the U.S. Chamber of Commerce.
“The PPP has been an enormous success, sustaining millions of small businesses and tens of millions of jobs,” said Senator Collins. “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.”
“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,” said Senate Small Business Committee Chair Ben Cardin. “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.”
“Our hardest-hit small businesses are depending on an extension of the Paycheck Protection Program to keep the lights on and continue operating beyond March 31st,” said Senator Shaheen. “With the PPP deadline fast approaching, I’m very pleased the Senate took action to pass my bipartisan legislation with Senators 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.”
Senators Collins, Cardin and Shaheen, along with Senator Marco Rubio (R-FL), authored the Paycheck Protection Program, which became law as part of the CARES Act last year. In 2020, more than five million small employers received forgivable PPP loans, helping to sustain more than 50 million jobs. The four architects of the PPP successfully advocated for the inclusion of $284.5 billion in the December COVID-19 relief package to reopen the program. According to the latest data from SBA, 3.1 million PPP loans have been approved in 2021 totaling nearly $196 billion.
Under the December law, small businesses that employ 300 or fewer people and that experienced a 25 percent or greater gross revenue loss between comparable periods in 2019 and 2020 due to COVID-19 are eligible to apply for a second forgivable PPP loan. In addition, forgivable overhead expenses are expanded to include supplier costs and investments in facility modifications and personal protective equipment needed to operate safely. In recognition of the severe impact that COVID-19 mitigation measures have had on the hospitality sector, in particular, the formula used to calculate the maximum forgivable loan amounts for second draw loans is enhanced for restaurants and hotels to equal 3.5x average monthly payroll. Further, small business owners that did not receive a PPP loan in the first round are also eligible to apply.