The Senate extends the PPP by two months
The US Senate passed a bill extending the Paycheque Protection Program (PPP) until the end of May, which will give companies affected by a pandemic more time to apply, Reuters reported. In addition, the government will have more time to process requests.
The bill passed 92-7 and had already been approved by the House, according to Reuters. Now he will step past President Joe Biden for the final signing. Biden is expected to sign the bill.
Biden, at a press conference, said he hoped for a solid recovery in the U.S. economy, especially as more people get vaccinated, Reuters reported.
PPP loans, intended to help businesses affected by the pandemic, can turn into grants if certain conditions are met. Without congressional action, the PPP would have expired at the end of the month and would not have had time to fill out requests, according to Reuters.
The new legislation gives Small business management (SBA) still 30 days after May 31 to complete processing loan applications, Reuters reported. Chairman of the Senate Small Business Committee Ben cardin said it was important because the $ 1.9 trillion relief bill signed by Biden recently expanded program eligibility to include more first-time borrowers, including nonprofits .
The new PPP funding round, adopted at the end of February, makes forgivable loans more accessible to people like concert workers and sole proprietors, as well as the smallest of small and medium enterprises (SMEs), PYMNTS reported.
It’s a response to complaints about previous P3 cycles, which often ended up excluding true small businesses because they were at a disadvantage when it comes to collection. Although they represent 98% of US SMEs, companies with less than 20 employees only obtained 45% of the funds.