There is $66 billion in unclaimed funds in the well-known
signed by President Joe Biden. It prolongs the PPP application deadline from March 31 until May 31. The law also gives the SBA an extra 30-day period until June 30, to process the applications to help businesses cope with the economic wallop from COVID-19.PPP Extension Act of 2021 just
Biden’s action comes after small-business advocates and others recently pressed for an deadline extension of at least of 60 days. Biden’s endorsement came after the House and the Senate approved the bill with bipartisan support. Many small businesses are continuing to rebound or struggling to survive given pandemic’s devastating blow. Those jolts reportedly were among factors that prompted Biden to include $50 billion in small business support in his fresh stimulus plan, along with another $7.25 billion for the PPP.
First launched in April 2020, the loan program was initially intended to provide loans to the neediest small businesses coping with the crisis. The PPP funding effort is now going through its third round. The PPP offers small businesses forgivable loans to help cover workers’ pay, rent and other operating costs.
Since the newest round of PPP rolled out in January 2021, the SBA has approved about $211.8 billion in funding covering over 3.5 million loans as of March 28, SBA data shows. The latest average overall loan size was $59,000. Some $284 billion was designated for PPP when it reopened in January.
Under the Black or African American category, 254,422 loans worth over $6 billion have been approved. The program was initially launched to provide loans to the neediest small businesses coping with COVID-19.
The SBA’s greater focus this year on smaller lenders comes after small business advocates and lawmakers claim that minority and women-owned firms did not get sufficient funding during the first two rounds of PPP. The SBA runs the program with the U.S. Treasury.