- Biden signed the PPP extension law on Tuesday.
- This bill extends the small business loan program for two months until May 31.
- It also allows the Small Business Administration to continue processing requests until the end of June.
A day before its expiration, President Joe Biden on Tuesday signed the extension of the Paycheck Protection Program (P3), extending federal assistance to small businesses until May 31.
Five days ago, the Senate sent the PPP Extension Act to Biden’s office, which extends the small business loan program by two months and allows the Small Business Administration to continue processing loan applications until the end of June. In both lodge and the Senate, the bill passed with overwhelming bipartisan support, and Biden declared the law a “bipartisan accomplishment.”
“Without signing this bill today, there are hundreds of thousands of people who would lose their jobs and small family businesses that could shut down forever,” he added. noted before signing the invoice.
Lawmakers have welcomed the adoption of the PPP extension, as many small businesses are still suffering the financial consequences of the pandemic. This is why Biden included $ 50 billion in helping small businesses in its recovery plan, including $ 7.25 billion specifically for the PPP.
According to the recent SBA The data, the PPP has so far provided 8.2 million loans to small businesses, totaling $ 718 billion, helping many small businesses keep paying their bills throughout the pandemic.
—House Committee on Small Business (@HouseSmallBiz) March 30, 2021
Since it was established under the CARES Act in March, however, the disbursement of the PPP loan has come under criticism. For example, although the program loans are intended for companies with 500 or fewer employees, some large companies have obtained them, such as the fast food chain Shake Shack gets $ 10 million, that he returned later.
In addition, the Office of Inspector General discovered that the PPP had distributed duplicate loans to more than 4,000 borrowers due to problems in the SBA checks, which should be reimbursed.
Democratic and Republican lawmakers have said the advantages of the PPP outweigh its disadvantages and are needed to provide pandemic relief to small businesses across the country.
“These loans saved small businesses in our country,” Senator Ben Cardin of Maryland told the Senate last week. “They wouldn’t be here today without this program.”