Paycheck Protection Program may be extended through May 31 to provide aid to small businesses
- The House Small Business Committee introduced legislation to extend the PPP through May 31.
- The program is set to expire this month.
- Biden's stimulus bill includes additional aid for small businesses but not a PPP extension.
Ahead of its current expiration date on March 31, the House Small Business Committee introduced legislation on Thursday to extend the Paycheck Protection Program (PPP) through the end of May, providing further relief for small businesses.
Led by Small Business Committee chair Nydia Velázquez, ranking member Blaine Luetkemeyer, Rep. Young Kim of California, and Rep. Carolyn Bourdeaux of Georgia, the bipartisan Paycheck Protection Program Extension Act would extend the PPP by two months and allow an additional 30 days for the Small Business Administration to process loans submitted prior to the new deadline on May 31.
"The demand for PPP loans right now is a testament to the program's effectiveness and the lingering impacts of this pandemic," Velázquez said in a statement. "That's why we cannot cut off aid now and this short-term extension is so important."
A senior Democratic aide told Politico that the House will vote on the measure next week, prior to members leaving Washington in mid-April.
This news would be a welcome change for small businesses who are continuing to experience financial hardships brought on by COVID-19. On February 22, President Joe Biden amended the PPP to target the smallest businesses and ensure that the aid was being distributed equitably, and in the $1.9 trillion stimulus bill the president signed on Thursday, $50 billion is set aside for small businesses, including $7.25 billion specifically for the PPP.
The Federal Reserve Board also announced on Monday the extension of the PPP's liquidity facility through June 30, allowing banks to continue pledging loans made through the program to small businesses.
"Getting our economy back means bringing our small businesses back," Biden said at a press conference on February 22. "And that's what we're going to do."