Congress passes bill to extend PPP deadline to Aug. 8

on 8:08 AM

The House and Senate passed a bill that would extend the deadline for applying for Paycheck Protection Program (PPP) loans. The president is expected to sign it shortly.

The bill, introduced by Senate Small Business Committee Ranking Member Sen. Ben Cardin (D-Md.), would extend the deadline for applying for PPP loans to Aug. 8.

Though the PPP still has approximately $130 billion in unspent funds, the program expired June 30 at midnight.

Credit unions are strong supporters of the PPP, but CUNA has engaged with Congress, the Treasury and Small Business Association with concerns about the program, including on the need for guidance on several matters and lender liability protection.

PPP forgiveness bill would remove regulatory hurdles

CUNA wrote in support of the Paycheck Protection Program (PPP) Forgiveness Act Wednesday, a bill that would simplify forgiveness of PPP loans under $150,000. The bill was introduced earlier this week by Sens. Kevin Cramer (R-N.D.), Bob Menendez (D-N.J.), Thom Tillis (R-N.C.) and Kyrsten Sinema (D-Ariz.).

“This bill will allow America’s small business owners and Main Street financial institutions to remain focused on serving their communities rather than jumping through burdensome regulatory hurdles. Specifically, this bill would provide forgiveness for Paycheck Protection Program (PPP) loans of $150,000 or less if the borrower submits an attestation form to the lender. It also ensures that the lender will be held harmless from any enforcement action if the borrower’s attestation contained falsehoods.”

America’s credit unions have issued thousands of PPP loans, including more than 60,000 loans averaging $49,000 each from the smallest credit unions.