Today, March 25, the Senate voted 92-7 in favor of legislation to extend the Payroll Protection Program (PPP) application window to May 31 from March 31. The bill was sent to President Biden’s desk for signature, and followed House passage last week. The loans are approved by the Small Business Administration (SBA) and distributed by private lenders. They are generally eligible for forgiveness if the borrower maintains its payroll.
The extension was necessary partially due to recent program changes specific to smaller businesses and self-employed applicants which created confusion and uncertainty among borrowers and lenders. Funding still remains in the program from the original $284B allotment from the Consolidated Appropriations Act.
Delaying this extension any further would’ve caused major disruption in much-needed capital, since some banks were already closing the program in anticipation of the March 31 original deadline.
Senators Marco Rubio and John Kennedy unsuccessfully offered amendments to the PPP extension bill. But with the House out of session, any changes would have meant disruption in the program.
For further questions on PPP or other Covid-related matters, please reach out to our team or visit jhmcpa.com.