Washington, D.C.—To date, 95 groups have endorsed the PPP Extension Act of 2021 that was introduced by Senators Susan Collins (R-ME), Ben Cardin (D-MD), and Jeanne Shaheen (D-NH) to help small employers retain access to forgivable Paycheck Protection Program (PPP) loans. Supportive organizations include the NFIB, the U.S. Chamber of Commerce, the American Hotel & Lodging Association, the American Dental Association, the International Franchise Association, the National Restaurant Association, the U.S. Travel Association, and others.
The PPP Extension Act of 2021 would extend the deadline to apply for a PPP loan from March 31, 2021, to May 31, 2021, and allow the Small Business Administration 30 days after May 31 to process any pending applications. Senators Collins, Cardin, and Shaheen’s bill 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), and Rob Portman (R-OH). The House companion bill, which was introduced by Representatives Nydia M. Velázquez (NY-07), Blaine Luetkemeyer (MO-03), Carolyn Bourdeaux (GA-07), and Young Kim (CA-39), passed the House by a vote of 415-3. The Senate is expected to vote on the bill this week.
“The Paycheck Protection Program has been instrumental in helping small businesses keep their doors open and continue paying their employees during the pandemic, but many small businesses need additional time to access this lifeline and have their loans processed,” said Senator Collins. “The nearly 100 groups that support our legislation agree that we need to extend this vital program. I urge our colleagues to support this bipartisan bill.”
“Small businesses and nonprofits need additional time to apply for PPP and have their loans processed,” Senator Cardin said. “Congress must pass the PPP Extension Act as quickly as possible—the need is there and the funds are there.”
“With small businesses and nonprofits across New Hampshire on the brink of permanent closure because of the pandemic, the Paycheck Protection Program has helped tens of thousands of businesses owners keep their doors open,” said Senator Shaheen. “Since the American Rescue Plan passed, we’ve heard from many small and minority-owned businesses that they’ll fall through the cracks if we don’t extend the deadline to access this vital support. I’m proud to help lead this bipartisan effort supported by 95 groups across the nation to ensure this lifeline is within reach for our small businesses and local entrepreneurs. The clock is ticking, and Congress must act now.”
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 totaling approximately $195.8 billion.
Financial institutions across Maine and the country are currently accepting and processing PPP applications for eligible small businesses seeking a forgivable loan for the first time and for those hardest hit small businesses who may receive a second forgivable loan.
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.
Click HERE to see the full list of 95 organizations that endorsed the PPP Extension Act of 2021.
Click HERE to read a letter of support from the stakeholders.