Bipartisan House lawmakers Thursday announced an agreement to extend the Paycheck Protection Program (PPP) by two months to ensure funds can continue to flow to small businesses after a program expiration date of March 31.
The agreement was signed by House Small Business Committee Chairwoman Nydia Velázquez (DN.Y.) and Rep. Blaine LutkemeyerWilliam (Blaine) Blaine Luetkemeyer GOP voters raise corporate money Local banks know Main Street best, not the federal government (Mo.), the committee’s top Republican, and Reps. Carolyn BourdeauxCarolyn Bourdeaux-Rouda passes on the bid for the newly drawn California seat, avoiding a bipartisan battle with the states Porter Four to host two-incumbent primaries in 2022 (D-Ga.) and Young KimYoung KimThis Year of the Tiger, Republicans reaching out to Asian voters, Southern California Democrats are throwing their weight behind Missouri House Democrat challenger Young Kim, who is the latest to test positive for COVID-19 MORE (R-California). The new billcalled the PPP Extension Act, would extend the program’s loan application deadline to May 31 and allow the Small Business Administration to process applications for an additional 30 days after that date.
“The current demand for PPP loans is a testament to the effectiveness of the program and the ongoing impact of this pandemic,” Velázquez said. “That’s why we can’t cut aid now and this short-term extension is so important.”
“As America begins to open up to business and vaccines become more widely available across the country, we must target support for small businesses that need it most. This bipartisan legislation will provide a meaningful expansion of Main Street USA’s paycheck protection program and tools to return to contributing to the local economy,” added Luetkemeyer.
Parliament will vote on the bill next week. according to Politicowho first reported on the agreement.
The extension is likely to allay some concerns that PPP funds could dry up, particularly as the approval time for applications has increased due to tighter fraud checks.
The PPP has provided more than $687 billion in pandemic relief. The small business loans can be forgiven if employers maintain their payrolls, making the program one of the most popular aspects of last year’s $2.2 trillion CARES Act.