President Joe Biden has signed the PPP Extension Act into law extending the deadline for small businesses to apply for funds to June 30.
The bill, introduced by Sen. Ben Cardin (D-Md.), Sen. Susan Collins, and Sen. Jeanne Shaheen (D-N.H.) will not only extend the PPP deadline but will also give the Small Business Administration (SBA) an additional month to process backlogged PPP applications.
The bill was co-sponsored by more than a dozen politicians including Sen. Roger Marshall (R-Kan.), Sen. Dan Sullivan (R-Alaska), Sen. Jacky Rosen (D-Nev.), Sen. Lisa Murkowski (R-Alaska), Sen. Patrick Leahy (D-Vt.), Sen. Ron Wyden (D-Ore.), Sen. Thom Tillis (R-N.C.), Sen. Jon Ossoff (D-Ga.), and others.
More than 100 organizations also endorsed the PPP extension including the U.S. Chamber of Commerce, the National Federation of Independent Businesses, American Farm Bureau Federation, and American Hotel & Lodging Association.
The initial rollout was pillaged by larger businesses as big banks helped their largest clients. Additionally, small minority and female-owned businesses were largely locked out of the first round. That prompted the SBA to work with Community Development Financial institutions (CDFIs) and Minority Serving Institutions (MSIs) to help small minority businesses.
Late last month, President Biden announced the Small Business Administration will only accept applications for PPP loans from firms with fewer than 20 employees, among other changes.
“The PPP has been an enormous success, sustaining millions of small businesses and tens of millions of American jobs,” Sen. Collins said in a release. “To date, Maine small employers have received nearly 43,000 forgivable loans to help them stay afloat and continue to pay their employees, and our legislation will allow more small businesses to access this lifeline. I am pleased that Congress acted before the PPP expired in order to prevent an interruption in the program and give small business owners this crucial two-month extension. I encourage eligible small businesses that have yet to apply for a first or second draw PPP loan to contact their financial institution as soon as possible.”