What You Need to Know
- CPAs urged the committee members Wednesday to extend the deadline.
- Borrowers are facing tax and compliance challenges and need more time, the AICPA says.
- Under the bill, SBA will have until June 30 to close any pending applications.
House Small Business Committee Chairwoman Nydia M. Velázquez, D-N.Y., introduced Thursday the Paycheck Protection Program (PPP) Extension Act, bipartisan legislation that would extend the PPP loan application deadline from March 31 to May 31.
The bill is also sponsored by Ranking Member Blaine Luetkemeyer, R-Mo.; Rep. Young Kim, R-Calif.; and Rep. Carolyn Bourdeaux, D-Ga.
The bill would also provide an additional 30 days for the Small Business Administration to process loans submitted prior to the new May 31 deadline.
“As America begins to open up for business and vaccines become more widely distributed across the country, we must provide targeted relief for small businesses that need it most,” Luetkemeyer said Thursday in a statement. “This bipartisan legislation will provide a commonsense extension to the Paycheck Protection Program and the tools for Main Street USA to contribute to their local economies once again.”
“The demand for PPP loans right now is a testament to the program’s effectiveness and the lingering impacts of this pandemic,” Velázquez added. “That’s why we cannot cut off aid now and this short-term extension is so important. Under this bill, small businesses will have two additional months to submit an application for a PPP loan, and SBA will have until June 30, 2021 to close any pending applications.”