The SBA's PPP loan deadline is fast approaching. But pressure is building to extend it.

The SBA's PPP loan deadline is fast approaching. But pressure is building to extend it.

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In a Feb. 25 letter, a coalition of organizations, including the National Council of Nonprofits, the Nonprofit Alliance, the Jewish Federations of North America and March of Dimes, asked members of Congress to extend the PPP through the end of 2021. They wrote that they were concerned there was not enough time to fully access the PPP.

David Thompson, vice president of public policy for the National Council of Nonprofits, said it wasn't until the groups saw the language in the House bill that they realized there was no PPP extension, despite that legislation opening up the PPP to a new set of nonprofits and adding another $7.25 billion to the program.

"I think there is a view that the money is running out, and there will be no need to extend it," Thompson said, adding that would leave many nonprofits that just got access to the program only two and a half weeks to apply. "That became clear that it was unacceptable."

Extending the program through the end of the year means Congress doesn't have to keep revisiting the deadline, Thompson said. Instead, he added, when it runs out of money, it can simply stop accepting applications, something SBA had done in earlier iterations of the program. He said the current plan is to get an extension into the Senate version of the new Covid relief bill to be passed by both houses of Congress and signed by Biden in mid-March.

In addition, Thompson stressed that extending the deadline would also help small businesses and nonprofits torn between applying for a PPP loan or a grant from the SBA's shuttered-venue operator grant program, which has yet to open to applications. Organizations that apply for one cannot apply for the other, leaving venue operators with applying for the PPP or rolling the dice on getting a grant when that program opens.

"It's a very serious train wreck," Thompson said. "Extending the date seems to be the easiest thing."

Source Name: 
Washington Business Journal
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