President Biden Signs the PPP Extension Act of 2021 into Law

On Mar 31, 2021

President Joe Biden signed the PPP Extension Act of 2021 into law yesterday, extending the Paycheck Protection Program an additional two months to May 31, 2021, and providing an additional 30-day period for the U.S. Small Business Administration (SBA) to process applications that are still pending.

“Without somebody signing this bill, there are hundreds of thousands of people who could lose their jobs, and small and family businesses that might close forever.  And, as you know, small business is the backbone of our economy, representing almost 50 percent of all the employees in America,” Biden said.

According to SBA Administrator Isabella Casillas Guzman, “President Biden sent another strong message to America’s more than 30 million small business owners negatively impacted by the pandemic: Help is here. By signing the PPP Extension Act of 2021 and the American Rescue Plan Act into law, the president is providing additional critical relief to the smallest of the small businesses – the mom-and-pop shops that line our Main Streets and keep our local and regional economies going.

In the most recent PPP report issued on March 29, the SBA has:

•  Guaranteed 3.58 million PPP loans totaling more than $211.8 billion in the 2021 PPP funding round.
• Guaranteed 8.7 million PPP loans totaling more than $734 billion as part of the Paycheck Protection Program (2020 & 2021)
• The average 2021 PPP loan is $59,000 and over 78.4% of these loans have been for $50,000 or less.
• 42.5% of 2021 PPP loans (more than 1.56 million) are First Draw PPP loans and, of those, nearly 98% are for those with 10 or fewer employees, providing new – and the smallest – businesses with critical relief.
• More than 1.55 million Second Draw PPP loans, totaling over $48.7 billion, have gone to those with 10 or fewer employees further supporting relief for the smallest businesses.

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