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March 17, 2021 at 02:02 PM
What You Need to Know
- Sponsoring lawmakers call the legislation a bipartisan, common-sense way to help small businesses.
- The short-term extension will help address the lingering economic impacts of the pandemic, Rep. Velázquez says.
- The American Institute of CPAs says the bill is needed given tax and compliance challenges for the second round of PPP loans.
The full House passed Wednesday the Paycheck Protection Program (PPP) Extension Act of 2021, bipartisan legislation that would extend the PPP loan application deadline from March 31 to May 31.
The bill, H.R. 1799, was introduced Thursday and sponsored by House Small Business Committee Chairwoman Nydia M. Velázquez, D-N.Y.; 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 loan applications 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.”
