President Joe Biden on Tuesday signed the “PPP Extension Act of 2021” into law, extending the Small Business Administration's Paycheck Protection Program loan application until May 31.
The initial PPP cutoff was set for March 31, but both chambers of Congress overwhelmingly passed legislation extending the program applications for two more months.
Under the law, SBA also will have an additional 30 days to complete PPP applications that were pending after May 31.
SBA notes PPP now has been used by more than 8.2 million businesses since last year.
Businesses can apply for PPP loans if they have 500 or fewer employees. The first draw of a PPP loan can go as high as $10 million, though the overall average loan is about $63,000 right now.
The big aspect of the PPP loan is that it is forgivable. SBA has already approved forgiveness on about 2.1 million loans, out of 5.2 million issued so far. About $186.1 billion in the loans have been forgiven.
PPP loans are forgivable as long as 60% or more of the proceeds are spent on approved expenses, which includes self-employment compensation for sole proprietorships and single-owner limited liability corporations (LLCs) that file income taxes based on a Schedule F.
Combined, “agriculture, forestry, fishing and hunting” have received $7.1 billion on 363,100 loans since the beginning of 2021, accounting for about 4% of the PPP loan volume.
President Prepares to Roll Out Infrastructure Plan
The Washington Post reported that the White House will unveil a $2.25 trillion infrastructure package on Wednesday that will include approximately $650 billion for roads, bridges, highways and ports.
The plan also includes $400 billion for home care for the eldering and disabled; $300 billion for housing infrastructure; $300 billion to jump start U.S. manufacturing; $180 billon for research and development; $100 billion for clean drinking water; $100 billion for the electric grid; and $100 billion for high-speed broadband development.
“After all the jokes about infrastructure weeks, we're going to have a real serious effort to get both infrastructure spending on roads and bridges and programs like broadband,” said Howard Gleckman, a tax expert at the nonpartisan Tax Policy Center think tank. “I think there's pretty broad bipartisan support is a big infrastructure plan. There is not bipartisan support for paying for it.”
Chris Clayton can be reached at Chris.Clayton@dtn.com
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