Congress votes to extend PPP

Congress today passed ICBA-advocated legislation to extend the Paycheck Protection Program ahead of its March 31 expiration.
 
Today's Senate vote—which followed last week's House passage—sends the extension to President Joe Biden to sign into law.
 
Background: Under existing law, any application not approved by March 31—even if it was submitted prior to that date—cannot receive PPP funds. The newly passed bill allows borrowers to apply for loans through May 31 and gives the SBA until June 30 to consider applications.
 
What it Means: This much-needed, two-month extension will ensure small-business and nonprofit applicants are not stranded by an abrupt shutdown. ICBA supports ensuring every potential borrower that needs a loan gets one.
 
What's Next: With the PPP extended, ICBA continues urging Congress and SBA to make the following program fixes:

• First-Draw Increase Eligibility: Allow borrowers with forgiven loans to apply for a loan increase.
• Second-Draw Eligibility: Allow those applying for a first draw in 2021 to apply for a second draw.
• Second-Draw Use of Proceeds: Establish a level of spending on ineligible expenses that would not disqualify borrowers from receiving a second loan.
• Farm Partnerships: Provide agricultural partnerships with equitable access to funding.
• Schedule C Borrowers: Allow Schedule C filers to apply for a loan increase under new SBA rules allowing them to use the gross income method.

More: PPP information and resources are available on the SBA and Treasury sites and ICBA's PPP and EIP News page.

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