President Biden Renews Paycheck Protection Program for Small Businesses

President Biden has extended the federal Paycheck Protection Program for another two months amid coronavirus-related economic strain.

Rodney Bosch

President Biden recently signed a two-month extension of the Paycheck Protection Program (PPP), which offers loans for small businesses to help keep their workforce employed while grappling with economic upheaval caused by the coronavirus pandemic.

The application deadline for the program was extended to May 31 with H.R. 1799, or the “PPP Extension Act of 2021.” The bill also extends the PPP authorization through June 30 to provide the Small Business Administration (SBA) additional time to process applications received by the application deadline.

The House approved the extension on a 415-to-3 vote earlier this month, and the Senate on March 25 cleared the legislation on a 92-7 margin.

The federal relief loan program was first established in the $2.2 trillion stimulus law passed last March under President Trump. In December, Congress restarted the program and added more funding. Around 3.5 million borrowers have received forgivable loans this year, taking the program’s total lending to $734 billion.

The Biden administration overhauled the program in late February, prompting the smallest businesses and self-employed people to rush to take advantage of newly freed-up aid. The extension by lawmakers gave small businesses, as well as lenders, more time to adjust to the overhaul.

Around $79 billion remains in the fund. Banks and financiers, which make the government-backed loans, generally expect the money to be depleted in mid-to-late April, well ahead of the program’s new deadline.

Additional information about the PPP, including getting matched with a lender in your area, is available on the SBA’s website.

This article originally appeared on our sister publication Security Sales & Integration‘s website.

About the Author

Rodney Bosch:

Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Rodney Bosch is an editor for CE Pro sister publication Security Sales & Integration. Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician.


Business SupportNews


Business Resourcecoronavirus