Last week, Senators Jeanne Shaheen, Susan Collins and Ben Cardin introduced the PPP Extension Act of 2021. The bipartisan and bicameral bill would help small employers retain access to forgivable Paycheck Protection Program (PPP) loans by extending the deadline for PPP applications for another two months to May 31, 2021, and then providing an additional 30-day period for the Small Business Administration (SBA) to process applications that are still pending.
Financial institutions are currently able to accept and process PPP applications through March 31, 2021. According to the latest data from SBA, 2.4 million PPP loans have been approved totaling approximately $165 billion, as a result of the December COVID-19 relief package. As a result of the CARES Act, which became law last March, more than 5 million small employers received forgivable PPP loans, helping to sustain more than 50 million jobs.
Following the announcement of the bill, the U.S. Travel Association on voiced strong support for the PPP Extension Act of 2021. Previously, U.S. Travel called on Congress to prioritize enhancements to the Paycheck Protection Program as a critical element of economic relief from the pandemic (although U.S. Travel CEO and president Roger Dow wanted the PPP deadline to extend through at least June).
U.S. Travel EVP for public Affairs and policy Tori Emerson Barnes said after the introduction of the PPP Extension Act of 2021:
“The hardest-hit U.S. businesses are still in dire need of aid, so extending the PPP application deadline is critical to help the U.S. economy get through the next few uncertain months.
“The leisure and hospitality industry currently accounts for nearly 40 percent of all U.S. unemployment, and it is still unclear when travel demand will finally be able to rebound on its own. Extending the PPP is vital for travel employers to keep their lights on, when many would otherwise be at risk of shutting their doors and their jobs being lost permanently.”
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