Extending Small Businesses’ Application Period for Paycheck Protection Program Loans From March 31st to May 31st (H.R. 1799)

What is H.R. 1799?

(Updated February 27, 2022)

This bill was enacted on March 30, 2021

This bill — the PPP Extension Act of 2021 — would extend the application window for small businesses seeking forgivable loans under the Paycheck Protection Program (PPP) from its current deadline of March 31, 2021, to May 31, 2021. It would also give the Small Business Administration (SBA) an additional 30 days to process applications received before June 1st and guarantee those loans.

Argument in favor

This bipartisan bill would extend the application and lending period for small businesses that are seeking forgivable loans under the Paycheck Protection Program beyond the fast-approaching deadline of March 31st to May 31st, ensuring those businesses can tap into unused funds to stay afloat.

Argument opposed

Hundreds of billions of dollars have already been loaned out to small businesses under the Paycheck Protection Program, and while it has been a bipartisan success, it has to end sometime. Small businesses would be better served by their local governments continuing to reopen their economies.

Impact

Small businesses; the PPP; and the SBA.

Cost of H.R. 1799

The CBO estimates that enacting this bill would cost about $15 billion in 2021 given the existing budget authority leftover for the PPP.

Additional Info

In-Depth: Rep. Carolyn Bourdeaux (D-GA) introduced this bipartisan bill to extend the Paycheck Protection Program (PPP) from its current expiration date of March 31st to May 31st:

“When I ran for Congress, I promised to go to Washington and get things done for Gwinnett and Forsyth counties. My bipartisan PPP Extension Act originated directly from concerns local business owners expressed to me regarding the PPP application period being set to end in March. This bill will extend that deadline, allowing more of our small businesses the opportunity to access critically-needed financial resources. It also adds a one-month processing period to enable the Small Business Administration to avoid bureaucratic delays on distribution of funds. I urge the Senate to pass this measure swiftly.”

Rep. Young Kim (R-CA), one of this bill’s lead Republican cosponsors, added:

“California’s small businesses have been some of the hardest hit in the country by COVID-19 and restrictive lockdowns, leading nearly 20,000 businesses to permanently close. We must ensure the billions in PPP funding left gets directly into the hands of our small business owners. This bill provides our small businesses the opportunity to receive the relief they need to stay afloat as we work to safely reopen our communities during this pandemic. I thank my House colleagues for supporting this commonsense bill and I urge the Senate to take swift action to support our small businesses. I’ll continue to do all I can to get through the gridlock and get things done for my constituents.”

This legislation has the support of 101 bipartisan cosponsors, including 71 Democrats and 30 Republicans. It passed the House on a 415-3 vote.

Of Note: Since its enactment as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program (PPP) has approved over 8.2 million loans valued at more than $718 billion through 5,475 lenders as of March 21st. Its overall funding level grew from $300 billion to its current level of $813.7 billion through several extensions and enhancements by Congress and the Trump administration during the course of 2020.

A report by USAFacts showed that a significant proportion of small business across the U.S. reported a “large negative effect” due to the 

Media:

• Sponsoring Rep. Carolyn Bourdeaux (D-GA) Press Release

• Cosponsoring Rep. Young Kim (R-CA) Press Release

• CBO Cost Estimate

• Causes (PPP Context)

• Causes (PPP Context)

• Causes (PPP Revisions)

• Causes (Small Business Context)