Critical bipartisan legislation extends the life of the Paycheck Protection Program by enabling small businesses to continue accessing much-needed financial assistance.
Small business owners give a sigh of relief with the recent passage by the House to extend the Payment Protection Plan applications from March 31 to May 31. Included in the bill, the SBA will have an additional month, until June 30, to process applications.
“By providing small businesses with two more months to apply and giving the SBA an additional month to process applications, we will help ensure critical support isn’t cut off,” said Chairwoman of the House Small Business Committee Chairwoman, Nydia M. Valásquez (D-NY).
The bill was introduced by Rep. Carolyn Bourdeaux who said that the “bipartisan PPP Extension Act originated directly from concerns local business owners expressed to me regarding the PPP application period being set to end in March.”
The latest legislative action is another boost to small businesses that remain after a rough economic year in the global pandemic. The Biden Administration worked to correct some of the previous president’s neglect of small businesses, by providing a two-week window for companies with 20 or less employees to apply for PPP forgivable loans.
“This extension is badly needed during this difficult time, as it would help eligible organizations—particularly small and underserved businesses—and their advisors,by giving them additional time to prepare eligible PPP applications for submission,” said American Institute of CPAs (AICPA) president, Barry C. Melanco, in a thank you message to Congress.
For those who are ineligible for PPP loans, the SBA also offers the Economic Income Disaster Loan for businesses experiencing revenue loss as a result of COVID-19. While PPP loans are forgivable, EIDL loans must be repaid. However, the SBA announced a 24-month deferment on EIDL loans.
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