Congress adopts two-month PPP extension

0

Bankers were quick to applaud Congress for passing the Paycheck Protection Program Act Extension Act.

The bill, which was approved by the Senate on Thursday after clearing the House of Representatives last week, extends the program’s funding authority from March 31 to May 31. The bill, which President Biden is expected to sign shortly, also gives the Small Business Administration until June 30 to process requests.

“Providing an additional two months for small businesses to access PPP financing and an additional month for the SBA to process PPP loans is a common sense step that will support economic recovery,” said Rob Nichols, President and CEO of the American Bankers Association. Release.

“The banking industry has moved heaven and earth to remain a source of strength for small businesses and welcomes the extended lead time to further help the hardest hit businesses through this program,” Richard Hunt, President and CEO of the Consumer Bankers Association President and CEO, said in a separate statement.

With the expansion of the PPP’s lending authority almost assured, the question arises as to how long the remaining funding, estimated at around $ 79 billion, will last.

Although a number of major lenders have stopped accepting applications, many, including Truist Financial, have indicated that they will consider reopening their portals if Congress extends the program. JPMorgan Chase, the country’s largest PPP lender, plans to expand its PPP lending business following the Senate vote, a spokesperson said.

While the final Senate vote was overwhelmingly in favor of the extension, there was some drama. An amendment proposed by Sen. Marco Rubio, R-Fla., That would have restricted the freedom of the SBA to set aside P3 funding for particular groups failed by a margin of 52-48. Susan Collins of Maine was the only Republican to vote against Rubio’s amendment.

“One thing that would undermine this popular, bipartisan agenda is if people came to the conclusion that it was being used arbitrarily to prioritize politically favored groups,” Rubio said.

With demand for stimulus funds still strong, financial industry advocates had strongly supported House legislation, which placed no restrictions on the authority of the SBA.

“With community banks providing over 60% of PPP loans and saving an estimated 33.7 million jobs, we strongly support that every potential borrower who needs a loan gets one,” Rebeca Romero Rainey, President and Chief from the leadership of Independent Community Bankers of America, said in a press release.

The PPP was created as part of the $ 2.1 trillion stimulus package promulgated by Congress in March 2020. Bank-led PPP lenders made 5.2 million PPP loans for $ 522 billion between the April 3 and August 8, when the funding authorization for the program expired.

Congress revived the PPP funding authority under the $ 900 billion stimulus legislation it approved in late 2020. So far this year, lenders have provided 3.1 million PPP loans. for $ 196 billion.

Leave A Reply

Your email address will not be published.