House Votes to Extend PPP Application Deadline

Under the bill, which passed by a vote of 415-3, firms have until May 31 to apply for a loan and the SBA faces a June 30 deadline to process them. Small business advocates had called for an extension of the March 31 deadline to give lenders more time to implement a series of changes the Biden administration made to the program.

In an effort to increase access to the funds, especially for the smallest businesses and those owned by women, minorities, and rural residents, the Biden administration created a 14-day window during which the SBA only approved loans for firms with fewer than 20 employees. The SBA also changed the loan calculation formula for sole proprietors, independent contractors, and self-employed business owners, potentially allowing them to receive larger loans.

But those changes were implemented just weeks before the current March 31 deadline. Lenders, for example, hadn’t been able to submit borrower applications to the SBA using the revised loan calculation method until March 5.

The Senate is expected to take up the legislation extending the deadline.

“We want it to move as quickly as possible,” said Senate Majority Leader Chuck Schumer (D., N.Y.).

Consideration of the PPP extension comes soon after Congress passed a $1.9 trillion coronavirus relief bill. Along with other forms of economic assistance and small business aid, that bill provided $7 billion to the PPP to expand its eligibility.

While Democrats passed the relief bill largely along party lines, extending the application window for PPP loans has bipartisan support in the House.

Separately, the Senate on Tuesday confirmed Isabel Guzman as administrator of the Small Business Administration on an 81-17 vote. This will be a return to the SBA for Ms. Guzman, who served as deputy chief of staff at the agency during the Obama administration.

—Amara Omeokwe contributed to this article.

Write to Andrew Duehren at [email protected]