Struggling Businesses Given More Time to Apply
On March 30, 2021, President Biden signed into law a new bipartisan bill that would extend the authorization of the Paycheck Protection Program (PPP) until May 31, a two-month extension past the original March 31 date. The new law also gives the U.S. Small Business Administration 30 additional days beyond May 31 to process any pending applications.
PPP loans have been vital to the health of countless small businesses during the COVID-19 pandemic, but many loan applicants have reported difficulty in both applying for loans and getting their applications processed before the deadline. That’s why NFIB considers support for the PPP Extension Act of 2021 a Key Vote for members of the U.S. House and U.S. Senate.
NFIB’s most recent COVID-19 small business survey revealed that 13% of small business owners report they will have to close their doors if economic conditions do not improve soon. Many struggling small businesses have benefited greatly from the PPP since the first round of the program opened in 2020.
A restaurant owner serving a small California community for more than 35 years told us what the second PPP will mean for her business: “The first PPP was a life saver for us and without it, it would have been incredibly difficult to survive this long. Especially with a second shutdown. Operating for takeout only is not sustainable with our large footprint and fixed costs. Eighty-five percent of my staff are unemployed – which is hard on the families especially. This second PPP will be necessary to keep us viable through this second shutdown.”
Read more about the significance of the PPP Extension Act here. If you are a self-employed small business owner, then you should know that the rules recently changed related to the PPP loan amount you may be eligible for. You can learn more about this adjustment using this infographic.
