Congress gave final approval on Thursday to a two-month extension of the Paycheck Protection Program, a popular federal loan program for small businesses, as well as giving the Small Business Administration an additional 30 days to process loans submitted before the new May 31 deadline.
The House approved the extension on a 415-to-3 vote earlier this month, and the Senate on Thursday cleared the legislation on a 92-7 margin. The program was set to expire on March 31 without congressional action.
“It’s clear that the most vulnerable small businesses will need help beyond March 31, so we must pass this extension as quickly as possible,” said Senator Ben Cardin, Democrat of Maryland and one of the lawmakers who introduced the legislation. “This common sense, bipartisan bill will meet the continued demand for P.P.P. loans.”
By extending the program, which was first established in the $2.2 trillion stimulus law passed last March, through May 31, lawmakers gave both lenders and small businesses additional time to adjust to an abrupt overhaul to the program announced by the Biden administration in late February. The changes led to gridlock and uncertainty as self-employed people and the smallest of businesses raced to take advantage of more generous aid freed up by the overhaul.
“The Paycheck Protection Program has been instrumental in helping small businesses keep their doors open and continue paying their employees during the pandemic, but many small businesses need additional time to access this lifeline and have their loans processed,” Senator Susan Collins, Republican of Maine, said in a statement urging her colleagues to support the legislation earlier this week. “The nearly 100 groups that support our legislation agree that we need to extend this vital program. I urge our colleagues to support this bipartisan bill.”