The Senate has decided to extend the Small Business Administrations’ pay paycheck protection program before the policy expires. The Senate voted 92 to 7 to pass the PPP Extension Act of 2021, which extends the program to May 31 instead of the current March 31 deadline and gives the SBA another 30 days to process loans.
Later the bill will be sent to president Joe Biden and will be made into law. The White House has exhibited its support for extending this support to small businesses. The result of the vote came a week after the House of Representatives passed the Paycheck Protection Program Extension Act of 2021. Later this was sent to the senate. The program loans to small businesses struggling to survive during the pandemic, which has led to millions of businesses curtailing operations or shutting down for periods.
This Paycheck Protection Program was established by the CARES Act to provide funding to small businesses that reopened in January with $284 billion in funding. SBA had awarded more than 3.1 million loans worth a total of nearly $196 billion. Few changes like a 14-day priority application window for businesses with fewer than 20 employees, updated eligibility rules for the forgivable loans, and a new calculation formula for sole proprietors.
Along with the $1.9 trillion American Rescue Plan, which President Joe Biden signed into law in March, awarded more funding to the SBA. The bill included $7 billion to expand PPP along with other provisions aiding small businesses.