The approval of the loan has become a long case this year due to new SBA fraud investigations that have delayed thousands of applications for weeks on end. Some banks, including Bank of America, have stopped accepting applications due to concerns about the settlement of loans by the SBA before March 31.
The deadline also threatens to limit the number of businesses that could benefit from the new Biden administration rules designed to extend PPP access to self-employed entrepreneurs, as well as business owners with violations and federal student loan violations.
The hasty bipartisan effort on the heels of a major party line battle over President Joe Biden’s $ 1.9 billion pandemic relief plan has highlighted a growing sense of urgency to address the PPP deadline.
In a statement, Cardin said: “It is clear that the most vulnerable small businesses will need help after March 31, so we need to succeed in this expansion as soon as possible.”
Rep. Carolyn Bourdeaux (D-Ga.), Who submitted the proposal to the House, said the authors of the bill had “extensive discussions” with their counterparts in the Senate before presenting the legislation.
“There is a very wide recognition that we need to give our credit providers and our small businesses another two months,” Bourdeaux said in an interview.
The National Federation of Independent Business said this week in the results of the survey that the number of small business owners expecting better conditions over the next six months is increasing, but that there are still major challenges. The group found that 40 percent of small business owners reported in February that could not be filled, with a significant number of people staying home to take care of the family and to protect themselves from Covid-19.
“The economic recovery remains unequal for small businesses, especially for those who still manage government and local regulations and restrictions,” said Bill Dunkelberg, the group’s chief economist. prioritize while planning future policy legislation. ”