On March 25, the Senate passed 92-7 legislation to extend the deadline for Paycheck Protection Program (PPP) loan applications to May 31. The program has issued 7.5 million loans totaling $687 billion to small businesses during the last year, according to the Small Business Administration (SBA). The bill would also allow the agency an extra month to process applications after the program closes.
This is a positive outcome for NAIFA members and the clients that they serve extending greater access to small business loans.
The PPP provides loans for small businesses impacted by the COVID-19 pandemic to cover necessary operating expenses, including payroll. Recipients that can document that they spent at least 60% of the loans on payroll and met other conditions are eligible to have the loans forgiven by the government. The PPP currently has billions of dollars in funding available. The SBA has estimated that funds available for PPP loans will last until mid to late April.
“Congress has made a good decision to extend the Paycheck Protection Program application deadline, and NAIFA is grateful to the Senators and Representatives who voted for the legislation,” said NAIFA Senior Vice President for Government Relations Diane Boyle. “Many NAIFA members are small business owners who have turned to the PPP to sustain their operations and continue serving clients despite the economic uncertainty caused by COVID-19. They also advise small business clients who drive the economy and employ countless Americans in communities across the country.”