President Biden on Tuesday signed legislation that will extend the deadline for businesses to apply for Paycheck Protection Program loans from March 31 to May 31.
The legislation, H.R. 1799, also allows the Small Business Administration to continue to process loans until June 30. This will allow loans that are in the pipeline on May 31 to be processed.
In signing the legislation, Biden said that nearly 90,000 business owners are “still in line,” adding that the program still has money it can lend.
“Without somebody signing this bill today, there are hundreds of thousands of people who could lose their jobs, and small and family businesses that might close forever,” Biden said during a White House signing ceremony.
The Credit Union National Association and the National Association of Federally-Insured Credit Unions have said that more “holds” are being placed on PPP loans than in the previous phase of the program. The SBA has said that in response to allegations of fraud and abuse, loans are being more strictly evaluated than in the first phase of the program.
Earlier this month, CUNA and many other groups called on Congress to extend the PPP program until the end of the year, saying that small businesses will continue to need assistance even after pandemic restrictions are lifted.