WASHINGTON — The Senate passed a bill 92-7 on Thursday to extend the deadline for business owners to apply for forgivable loans through the Paycheck Protection Program, giving applicants two more months to apply for federal aid.
The bill had already passed the House, so it now goes to President Joe Biden’s desk to be signed into law. The loan program originally co-authored by Sen. Susan Collins, R-Maine, was started last year to help businesses survive the COVID-19 pandemic.
The deadline for applications would be extended to May 31 under the bill, and the federal government would have until June 30 to process the applications.
The COVID-19 relief bill that Biden signed into law this month included another $7.25 billion for the program, but it did not extend the timeline for getting the loans. Business groups lobbied lawmakers to keep the program going to help ensure businesses that still need help can get it.
The Small Business Administration reports that it has approved nearly 7.9 million loans totaling about $704 billion. The loans are structured so they can be fully forgiven if the recipient attempts to maintain similar levels of employment and uses at least 60 percent of the loan to cover payroll costs. The rest can be used on rent, utility costs and other operational expenses.
“I am pleased that Congress came together once again today to help more small businesses to access this lifeline by extending the deadline to apply to receive these forgivable loans,” Collins said in a statement.
Story by Kevin Freking. BDN writer Michael Shepherd contributed to this report.