House OKs PPP Loan Application Deadline Extension
What would you like to know
- Sponsoring lawmakers see the legislation as a sensible, bipartisan way to help small businesses.
- The short-term extension will help cope with the lingering economic impacts of the pandemic, said Representative Velázquez.
- The American Institute of CPAs says the bill is necessary given the tax and compliance challenges for the second round of PPP loans.
The Plenary Assembly adopted on Wednesday Paycheque Protection Program (PPP) Extension Act, 2021, bipartite legislation that would extend the PPP loan application deadline from March 31 to May 31.
The bill, HR 1799, was introduced Thursday and sponsored by the Chair of the House Small Business Committee, Nydia M. Velázquez, DN.Y .; Ranking Member Blaine Luetkemeyer, R-Mo .; Representative Young Kim, R-California; and Representative Carolyn Bourdeaux, D-Ga.
The bill would also give the Small Business Administration an additional 30 days to process loan applications submitted before 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 to the small businesses that need it most,” Luetkemeyer said in a statement Thursday. . “This bipartisan legislation will provide a common sense extension to the paycheck protection program and the tools to allow Main Street USA to once again contribute to their local economies.”
“The demand for PPP loans at this time is a testament to the effectiveness of the program and the lingering impacts of this pandemic,” Velázquez added. “This is why we cannot stop aid now and this short term extension is so important. Under this bill, small businesses will have an additional two months to submit a PPP loan application, and the SBA will have until June 30, 2021 to close any pending applications. “