This week, President Biden extended the Paycheck Protection Program by two months.
The program offers loans for SMBs to keep workforces employed during the coronavirus pandemic. The deadline to apply for the program was extended to May 31 with the “PPP Extension Act of 2021.” That bill also extends PPP authorization through June 30 to provide the Small Business Administration (SBA) more time to process applications.
The House approved the extension on a 415-to-3 vote earlier this month, and the Senate cleared it 92-7.
Related: Navigating The Tax Implications Of The PPP And COVID-19 Relief Programs
The federal relief loan program was first established in the $2.2 trillion stimulus law passed last March under President Trump. In December, Congress restarted the program and added more funding. Around 3.5 million borrowers have received forgivable loans this year, taking the program’s total lending to $734 billion.
The Biden administration overhauled the program in late February, prompting the smallest businesses and self-employed people to rush to take advantage of newly freed-up aid. The extension by lawmakers gave small businesses, as well as lenders, more time to adjust to the overhaul.
Around $79 billion remains in the fund. Banks and financiers, which make the government-backed loans, generally expect the money to be depleted in mid- to late April, well ahead of the program’s new deadline.
Additional information about the PPP, including getting matched with a lender in your area, is available on the SBA’s website.
