President Biden has signed the Paycheck Protection Program (PPP) extension into law.
The PPP was created to assist small businesses in surviving the economic downturn resulting from the Covid-19 pandemic.
Following this move, the deadline to apply for a PPP loan has now been extended from March 31 to May 31.
Furthermore, the law now extends authorization of loans to June 30 which allows the Small Business Administration (SBA) more time to process applications.
In the past year, PPP has approved more than 8.7 million loans, totaling more than $734bn since it was created last year, according to data from the SBA.
The bill to extend the deadline received bipartisan support in Congress, passing the House by a vote of 415 to 3, and being approved in the Senate by a vote of 92 to 7.
While signing the bill, Bill said: “It is a bipartisan accomplishment. Without somebody signing this bill today, there are hundreds of thousands of people who could lose their jobs, and small family businesses that might close forever.”