There are $ 66 billion in unclaimed funds in the famous
sign by President Joe Biden. It extends the PPP application deadline from March 31 to May 31. The law also gives the SBA an additional 30 days until June 30, to process applications to help businesses cope with the economic crisis of COVID-19.PPP Extension Act of 2021 fair
Biden’s action comes after small business advocates and others recently called for an extension of at least 60 days. Biden’s approval came after House and Senate approved the bill with bipartisan support. Many small businesses continue to rebound or struggle to survive in the face of the devastating blow of the pandemic. The jolts were said to have been among the factors that prompted Biden to include $ 50 billion in support for small businesses in his new stimulus package, as well as an additional $ 7.25 billion for the P3.
First launched in April 2020, the loan program was initially intended to grant loans to the most disadvantaged small businesses in the face of the crisis. The PPP financing effort is now in its third round. The PPP provides small business forgivable loans to help cover workers’ wages, rent and other operating costs.
Since the last PPP round launched in January 2021, the SBA has approved funding of around $ 211.8 billion covering more than 3.5 million loans as of March 28, according to SBA data. The last aggregate average loan amount was $ 59,000. Some $ 284 billion was allocated to the PPP when it reopened in January.
In the Black or African American category, 254,422 loans worth over $ 6 billion were approved. The program was originally launched to provide loans to the poorest small businesses facing COVID-19.
This year, the SBA is focusing more on small lenders after small business advocates and lawmakers claimed minority and women-owned businesses failed to secure sufficient funding in the first two cycles of PPP. The SBA manages the program with the US Treasury.
“Almost 90,000 business owners are still in line and there is money left. Without someone signing this bill today, hundreds of thousands of people could lose their jobs and small family businesses could shut down forever. And, as you know, small businesses are the backbone of our economy, accounting for nearly 50% of all employees in America.
Yet the PPP campaign has been the subject of criticism. Observers said that large companies were recipients of PPP loans the first time, although they had more capital resources than small companies. Observers also reported that minority-owned businesses had difficulty operating the program, especially at the start.
But in recent days, lawmakers in both houses of Congress have widely argued that the advantages of the PPP outweigh the disadvantages in providing relief to small businesses devastated by the pandemic.
SBA administrator Isabella Casillas Guzman reflected on Biden’s actions on Tuesday.
Today, President Biden sent another strong message to the more than 30 million American small business owners negatively affected by the pandemic: The help is here. By signing the PPP Extension Act of 2021 and the American Rescue Plan Act, the President is bringing further critical relief to the smallest of small businesses – the mom-and-pop stores that line our main streets and keep our local and regional savings. working.