On March 25, the Senate is expected to pass the AGC-supported Paycheck Protection Program (PPP) Extension Act that would extend the deadline for taking out a PPP loan through June 30, 2021. Importantly, while the legislation extends the deadline for loan approval through June 30, borrowers’ applications must be submitted to their lenders by May 31. The House previously passed the bill, and President Biden is expected to sign it if and when it reaches his desk. Without congressional action, the program’s authorization will expire on March 31, 2021. The extension will give construction firms more time to apply for PPP loans, as many firms see waning backlogs.
The end-of-year COVID relief legislation passed in December 2020 authorized an additional $284 billion in new lending for the PPP. However, as of March 21, 2020, the SBA had lent out only $195 billion, leaving roughly $90 billion in lending authority untapped. By extending the authorization through June, lenders will have more time to access these remaining funds.
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