Under the new law, many small companies will receive loans under the “American Bailout Plan”
On March 30, President Joe Biden signed the “PPP Extension Act of 2021” (PPP Extension Act of 2021). The three “P’s” that begin the name of the law stand for “Wage Protection Program. This program is primarily designed to help small firms. The law was ratified in Congress last week when the Senate passed it overwhelmingly following the House of Representatives.
From January through March inclusive, more than three million small firms were able to get loans totaling nearly $200 billion from the federal Small Business Administration (SBA) under the program. Now, under the new law, the program, originally set to run through March 31, has been extended through May 31. That means the SBA will now have time to make more small business loans. The federal government received the funds for the program as part of the “American Bailout Plan,” for which Congress, under pressure from the Biden administration, appropriated $1.9 trillion.