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Congress Reaches Agreement to Extend PPP

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Congress Reaches Agreement to Extend PPP

Leaders in both parties of Congress reached an agreement to extend the Paycheck Protection Program (PPP) for an additional two months. House Small Business Chair Nydia Velazquez (D-NY) and Ranking Member Blaine Luetkemeyer (R-MO) came to an accord yesterday. AFSA had joined with others in the industry last week asking for an extension of the program that was set to expire March 31.

The PPP provides government-backed loans to small businesses which can be fully forgiven if employers maintain payroll and employment levels. Although the deal is tentative, the agreed-upon framework would delay the PPP’s loan application deadline to May 31 and give the Small Business Administration the authority to process applications for 30 days after the deadline.

The House is expected to vote on and pass the legislation next week with bipartisan support.

AFSA has also been working with House and Senate leaders on the issue of PPP loan forgiveness. Financial institutions who received PPP loans and used them to keep their employees on the payroll should be able to get those loans forgiven.

March 11th, 2021 by