House Votes to Extend PPP Loan Application Deadline to May 31

Last week, the U.S. House of Representatives passed the PPP Extension Act of 2021 to extend the deadline for Paycheck Protection Program loan applications from March 31 to May 31. The bill passed overwhelmingly, 415-3, riding a wave of support from business groups and trade associations. The bill has been sent on to the Senate, where it needs 60 votes to pass.

While the initiative to extend the PPP deadline has bipartisan support, the bill faces some difficulty. A group of Senate Republicans introduced their version of the legislation that limits how the Small Business Administration can allocate PPP funds.

“We hope the Senate will move the bill quickly, that no one will stand in the way, that no one will block it,” said Senate Majority Leader Chuck Schumer (D-NY). “We are not going to end this week without passing an extension and I’m confident that once again we will get the job done.”

Following the passage of the PPP Extension Act in the House, a coalition of nearly 100 hundred trade associations and chambers of commerce sent a letter to the sponsors of the bill, thanking them for their “bicameral leadership and swift bipartisan action.”

“Nearly one year into the COVID-19 pandemic, the continued liquidity challenges of the small business sector are acute, especially for those businesses limited by dramatic capacity restrictions and other critical health and safety protocols in place to protect the public, consumers and workers from COVID-19,” the letter says.

“Thank you for extending the window of opportunity for pandemic programs to effectively impact the affected small business sector, especially those traditionally under-invested and underserved groups which must also be given the chance to succeed.”

The coalition, which includes the National Association of Home Builders, the National Association of the Remodeling Industry, and the Associated General Contractors of America, also highlighted in the letter several issues that continue to plague the PPP:

“While we realize the Small Business Administration (SBA) is under tremendous time constraints and is struggling with internal resource issues, our members are highly concerned by the lack of progress on major Paycheck Protection Program (PPP) processing issues, including hold/error codes and application rejections due to Taxpayer Identification Number (“TIN”) issues or mismatches, in addition to many unresolved technical problems with the current PPP process. These delays and denials may put many applicants in danger of not making the March 31st authorization deadline.”

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