Credit unions should be aware that President Joe Biden signed the PPP Extension Act of 2021 into law today (March 31), which extended the Paycheck Protection Program (PPP) an additional two months to May 31, 2021.
The act has also granted the SBA an additional 30-day period to process applications that are still pending.
“By signing the PPP Extension Act of 2021 and the American Rescue lan Act into law, the President is providing additional critical relief to the smallest of the small businesses — the mom-and-pop shop that line our Main Streets and keep our local and regional economies going,” said SBA Administrator Isabella Casillas Guzman.
According to the Credit Union National Association, credit unions made more than 204,000 Paycheck Protection Program (PPP) loans totaling $9.7 billion, averaging $47,624 each through the program’s first round.
CUNA called on Congress to extend the PPP through Dec. 31 in a recent letter.
“Despite the breadth of this emergency aid, small businesses continue to struggle, especially minority-owned businesses. Survey data show that 66% of minority-owned small businesses fear permanent closure due to the pandemic compared to 57% of non-minority-owned firms,” the letter reads. “The same report shows that minorities have a harder time accessing the capital needed to keep their businesses open.