Deadline for Paycheck Protection Program loans pushed to May 31
By Jenny LescohierMarch 29, 2021
Congress approved a two-month extension of the Paycheck Protection Program (PPP), a federal loan program designed to support small businesses negatively impacted by the Covid-19 pandemic.
Originally set to expire on March 31, one of the primary goals of the program is to help businesses keep workers on their payrolls. The new application deadline is May 31, pending President Biden’s signature.
The bill also gives the Small Business Administration (SBA) an additional 30 days to process loans after the new deadline.
The House approved the extension on a 415-to-3 vote earlier this month, followed by the Senate last Thursday with a vote of 92-7 in favor.
According to reports, the PPP has approved 8.2 million loans totaling $718 billion since last April. About 3.1 million PPP loans, totaling nearly $196 billion, have been approved since the relaunch of the program in January, according to SBA data released March 28.
The deadline extension does not provide additional funding, however it gives small businesses and others applying for PPP loans more time to complete applications, while allowing the SBA more time to process them.
It’s been reported that as many as 190,000 applications are being held up due to “unresolved error codes” related to checks and balances put in place to help prevent funding of fraudulent claims.
By extending the program, which was first established in the $2.2-trillion stimulus law passed last March, lawmakers gave both lenders and small businesses additional time to adjust to an abrupt overhaul to the program announced by the Biden administration in late February.
“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,” Senator Susan Collins, Republican of Maine, was quoted last week.