This week, the Senate voted for a Paycheck Protection Program extension for 2 months over concerns that 31 March expiry of small enterprise rescue fund may leave the struggling employers sans a major economic lifeline.
Senators casted 92 to 7 votes for passing the 2021 PPP Extension Act; thus delaying the deadline of the program to 31 May and offering the SBA (Small Business Administration) additional time of thirty days.
US President Joe Biden has hinted that he would sign the law, which will arrive at his desk the coming week. The 2021 PPP Extension Act has already been passed by the House of Representatives the previous week on bipartisan basis.
The Congress developed this rescue fund a year ago that offers government-supported forgivable loans for small businesses when they maintain a proper payroll. Overall, the lawmakers have sanctioned around $806bn for funding the program.
Till 7 March this year, the PPP Extension Act has approved around 2.4mn loans worth around $165bn, which is over 50 per cent of the $284bn assigned to this program while it was reopened this January. The program had earlier sanctioned around $525bn as loan to 5.2mn companies in 2020, saving around 50mn jobs, as per the SBA.