President Biden on Tuesday signed into law a two-month extension of the Paycheck Protection Program one day before the coronavirus relief fund was poised to expire, giving small businesses until May 31 to apply for a forgivable loan.
Senators voted 92 to 7 to pass the PPP Extension Act of 2021 last week, extending the program’s deadline from March 31 and giving the Small Business Administration (SBA) an additional 30 days after that to process pending applications. The House of Representatives also passed the measure on a bipartisan basis.
Congress established the program, which provides government-backed grants to small businesses if they maintain their payroll, one year ago with the passage of the $2.2 trillion CARES Act. In total, lawmakers have approved about $806 billion in funding for the program.