More than 100 national and local trade and business organizations have signed and sent a letter to key government lawmakers asking them to extend the deadlines for the Paycheck Protection Program (PPP).
The letter was sent to House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, and Minority Leaders Kevin McCarthy and Mitch McConnell. In the letter, the groups recognized the work recently done to ensure that sole proprietorships and small businesses are given top priority in PPP funding. However, they add that more needs to be done.
“However, these changes will make it even more difficult for the millions of companies working on PPP applications to submit them to the SBA before the deadline. Some of the signing lenders already have hundreds of thousands of lagging PPP applications, ”the letter reads. “A lot of applications need to be reworked after new rules were released this week. Another wave of applications is widely expected.
The groups are requesting an extension of at least 90 days to June 30, 2021.
“In the next month, the SBA and ~ 5,000 lenders just don’t have enough time to implement rule changes
in technical, content, support and compliance updates and then edit and approve new applicants,
and financed. As a result, many Eligible Businesses, Independent Contractors, Sole Proprietors, and the Self-employed will not be approved before March 31, 2021. “
The PPP was changed several times after the first version of the program was pillaged by national chains and large banks ignored their smallest customers for large corporations. One of the first changes the Small Business Administration made was to allow Community Development Financial Institutions (CDFIs) and Minority Institutions (MSIs) to distribute $ 10 billion in PPP funds to small businesses.
Last week the Biden administration announced several changes to the PPP. Changes include small businesses with fewer than 20 employees and sole proprietorships having an exclusive two-week window to apply for PPP funding. Other changes will also help self-employed and independent contractors get more money.
The letter was signed by the National Small Business Association, the American Financial Services Association, more than 40 local Chamber of Commerce groups, and a number of other small business organizations.