The Senate on Thursday voted to extend the Small Business Administration’s Paycheck Protection Program just a week before it was slated to expire.
Senators 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.
The vote comes about a week after the House of Representatives passed the PPP Extension Act of 2021 and sent the legislation to the Senate. A companion to the House bill had been introduced previously by a bi-partisan group including U.S. Senate Committee on Small Business & Entrepreneurship Chair Ben Cardin, D-Md.; Sen. Susan Collins, R-Maine; and Sen. Jeanne Shaheen, D-N.H.
More from Invest in You:
Suze Orman: Don’t invest your stimulus checks. Here’s what to do
A few days cost some small businesses thousands on PPP forgivable loans
Many have an extra month to file 2020 taxes. Don’t miss out on these savings
The program, which was established by the CARES Act to provide forgivable funding to small businesses, reopened in January with $284 billion in funding. Through March 21, the SBA had awarded more than 3.1 million loans worth a total of nearly $196 billion.
Calls to extend the PPP deadline have grown since the Biden administration in February announced changes to the program just weeks before it was set to end. Those changes included 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.
Though the updates were slated to get more funding to the smallest businesses, many of which are minority- or women-owned, the timing created confusion for many. Sole proprietors, who would get more money under the new calculation formula, were particularly frustrated, especially those who missed out on bigger loans by a few days.
In addition, 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.
This is a developing news story. Check back for updates.
Are you a small business that recently got a first draw PPP loan and is trying to get a second draw PPP loan? Email carmen.reinicke@nbcuni.com to share your story.
SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.
CHECK OUT: Single mom earns $10,000/month on Outschool: ‘I would have never been able to make as much money as a regular teacher’ via Grow with Acorns+CNBC.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.