Congress extends Paycheck Protection Program

Congress has voted overwhelmingly to continue the Paycheck Protection Program (PPP) for another two months as small businesses continue to struggle with the implications of the COVID-19 coronavirus pandemic.

CNBC reports that the PPP Extension Act of 2021 passed the Senate 92 to seven to extend the program beyond the current March 31 deadline to May 31 and to give the Small Business Administration another 30 days to process loans. The bill now only awaits the signature of President Joe R. Biden who has shown support for the program.

In February, the Biden administration opened a 14-day window during which only businesses with less than 20 employees could apply for PPP relief.

The latest round of PPP funding has showed a large increase in its provisions for small businesses including a 60 percent increase in the funding going to businesses with fewer than 10 employees, a 30 percent increase in the amount of funding going to small business in rural areas, and a 40 percent increase in the share of funding disbursed through the Community Development Financial Institutions and Minority Depository Institutions.

The move also helped sole proprietors, independent contractors, and the self-employed receive more financial support by revising the loan calculation formula for these applicants so they can receive more relief and setting aside $1 billion for businesses in this category without employees in low-and moderate-income areas.

The second round of PPP loans have taken longer to disburse than the first, for tips on how to plan accordingly click here.