WASHINGTON, D.C. – Today, the U.S. Senate voted overwhelmingly to extend the Paycheck Protection Program (PPP) through June 30, 2021.
Center for Responsible Lending Director of Advocacy Ashley Harrington issued the following statement:
We applaud the U.S. Senate for joining the House in extending the Paycheck Protection Program, and urge President Biden to quickly sign the bill into law. The PPP is a lifeline for small businesses, including many Black and Latino-owned businesses that are vital to their communities. The $800 billion PPP was implemented quickly, with little attention given to ensuring equitable distribution. The Biden Administration recently made crucial improvements to the program that remove barriers to access, but those improvements would not be available to many businesses without this extension.
We also urgently need the SBA and Congress to make the recent rule change for Schedule C filers retroactive so that more microbusinesses can benefit. Because of a flaw in how income was calculated for these very small businesses during the first eleven months of the program, a substantial number got only a fraction of the relief they needed to survive the pandemic economy. This has left many Black, Latino, and Asian business owners without the help they need. While the larger loan amounts are not windfalls, a few thousand dollars for a business that would otherwise close during these times is well worth our investment, and would go far in fulfilling the purpose of the PPP.
The extension will provide time for more small businesses to access critical relief, as $88 billion remains. And it will allow time for lawmakers to make the Schedule C improvement retroactive, and to make any other improvements needed to ensure equity and keep more businesses afloat while funds remain.
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