Senate Passes Clean PPP ExtensionMarch 25, 2021
Today, March 25, the Senate voted 92-7 in favor of legislation delaying the Paycheck Protection Program (PPP) deadline to May 31 from March 31. The bill was sent for signing to President Joe Biden, following House passage last week. The loans, which are approved by the Small Business Administration (SBA) and distributed by private lenders are eligible for forgiveness if the businesses maintain their payroll. This bill would also allow the SBA thirty days after the May 31 deadline to process pending applications.
Senators Marco Rubio (R-Fla.) and John Kennedy (R-La.) unsuccessfully offered amendments to the PPP extension bill. The NSBA opposed these amendments, as they would have required the House to pass the legislation again, significantly delaying the passage of the bill, as that chamber is out until mid-April.
Senator Rubio’s amendment would have restricted SBA’s ability to prioritize certain borrowers over others, while Senator Kennedy’s amendment would have prohibited business owners who have been convicted of a felony in relation to a riot or civil disorder in the last two years from using the program.
While changes are needed to the PPP, delaying this extension would have caused a major disruption in much-needed capital, since some banks providing loans under the PPP had already began to close down their application portals in order to process all the requests and clear government fraud checks in time by the March 31 deadline.