Small Business Groups Urge Congress To Extend PPP Deadline

Small Business Groups Urge Congress To Extend PPP Deadline https://ift.tt/eA8V8J

More than 100 national and local trade and business organizations have signed and sent a letter to the government’s top lawmakers urging them to extend the Paycheck Protection Program (PPP) deadlines.

The letter was sent to House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, and minority leaders Kevin McCarthy and Mitch McConnell. In the letter, the groups acknowledged the work that has been done recently to ensure sole proprietors and small businesses get first priority at PPP funding. However, they add that more must be done.

“However, these changes will make it even harder for the millions of businesses working on PPP applications to submit them to the SBA before the deadline. Some of the undersigned lenders already have hundreds of thousands of backlogged PPP applications,” the letter states. “Many applications will require revisions after new rules are published this week. And another wave of applications is widely expected.

The groups are asking for at least a 90-day extension of the deadline until June 30, 2021.

“There is simply not enough time in the next month for the SBA and ~5,000 lenders to convert rule changes
into technical, content, support, and compliance updates and then get new applicants processed, approved,
and funded. Therefore, many eligible businesses, independent contractors, sole proprietors, and self-employed people will not be approved before the March 31st, 2021 deadline.”

The PPP has had several changes made to it after the first version of the program was pillaged by nationwide chains and large banks ignored their smallest clients for big businesses. One of the first changes the Small Business Administration made was allowing Community Development Financial Institutions (CDFIs) and Minority Serving institutions (MSIs) to distribute $10 billion in PPP funding to small businesses.

Last week, the Biden administration announced several changes to the PPP. The changes include giving small businesses with less than 20 employees and sole proprietorship’s will have an exclusive two-week window to apply for PPP funding. Other changes will also help the self-employed and independent contractors receive more money.

The letter was signed by the National Small Business Association, the American Financial Services Association, more than 40 local Chambers of Commerce groups, and a number of other small business organizations.

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