Politics

Senate passes PPP extension bill

The Paycheck Protection Program application deadline has been moved from 31 March to 31 May

The Senate has passed a bill which will move the Paycheck Protection Program (PPP) application deadline from March 31 to May 31.

Within the Senate, the PPP Extension Act of 2021 won the final vote by 92 to 7.

An amendment, proposed by Senator Marco Rubio of Florida, would have restricted the U.S. Small Business Administration’s (SBA’s) ability to prioritize certain PPP borrowers over others.

However, the amendment was narrowly defeated 52 to 48.

If passed, the vote may have led to an amended bill being sent back for approval to the House of Representatives, which had passed the original bill 415 to three.

In her testimony to the House Committee on Small Business, Lisa Simpson, AICPA’s vice president of firm services, said: “An extension of the PPP application deadline for at least 60 days after 31 March, 2021 will provide an opportunity for the SBA to address its technical issues, provide critical guidance, and work with lenders and borrowers so that small businesses can navigate the application process and receive a loan.”

She added: “While the rollout of this round of PPP has not been as streamlined and efficient as many had hoped, the AICPA recognizes and appreciates the leadership of Congress, and the efforts of the SBA and Treasury to engage with borrowers, lenders, CPAs, payroll processors and others in this public-private effort, to provide relief to the country’s small business owners.

“The accounting profession is committed to maintaining open dialogue with Congress, SBA, Treasury and lenders to help create small-business solutions and drive business and economic recovery.”

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