PPP was again extended; lawmakers advocate for broader coverage of long-term care program – Business Daily News
President Biden enacted the 2021 PPP Extension Law on Tuesday (HR 1799), which extends the application deadline for the Small Business Administration Paycheck Protection Program to May 31 and extends loan authorization until June 30. The bill was adopted by the House of Representatives by 415 votes to 3 and approved in the Senate by 92 votes.
The PPP was created by Congress in March 2020 to help employers struggling to stay open during the coronavirus pandemic. As of March 28, the program had approved more than 8.7 million loans totaling more than $ 734 billion since its inception, according to Small Business Administration. The data. For all program loans in 2021, 78.4% are $ 50,000 or less, and the average loan is $ 59,000. At least 130 senior residential operators took advantage of the loan forgiveness program.
“Small businesses are the backbone of our economy, accounting for nearly 50% of all employees in America,” Biden said at the signing ceremony.
Earlier this month, several lawmakers sent a letter SBA administrator Isabel Guzman calling for emergency regulation to allow previously eligible long-term care facilities and elderly communities to access PPP “second draw” loans. The December Economic Aid Law simplified the program’s eligibility criteria, preventing many small regional operators from qualifying for additional loans. With the help of Argentum, the letter helped gain the support of 32 other members of Congress demanding the administrative change.
“The ability to continue serving the elderly is at great risk due to the ineligibility of some to access second-draw loans,” the lawmakers wrote. “In fact, 90% of nursing homes operate at a loss, and two thirds of these suppliers say they will not be able to continue their operations over the next year under current conditions. Similar financial challenges confront half of the living communities of the elderly. It is estimated that the long-term care sector should lose $ 94 billion over two years due to the pandemic. The need for second-draw PPP loans could not be more urgent. “