The U.S. House Small Business Committee has reached a bipartisan agreement to extend the Paycheck Protection Program for two months, reports Politico Pro. This is due to growing concern that the March 31 deadline would deprive many companies the aid they need.
The deal, struck by House Small Business Chair Nydia Velázquez (D-N.Y.) and Rep. Blaine Luetkemeyer (R-Mo.), delays the PPP loan application deadline to May 31 and gives the Small Business Administration authority to continue processing pending applications for 30 days after that date, according to the report.
The House will vote on this bill next week before members leave Washington D.C. until mid-April. The bill would then likely need unanimous agreement from the Senate to expedite its passage. But in a possible sign of bipartisan support, the House will take up the bill using an accelerated procedure requiring support from two-thirds of members.
PPP approvals have faced challenges this year because of new SBA fraud reviews, which delayed thousands of applications for weeks at a time, according to the report. Some banks have stopped accepting applications because of concerns of clearing the loans through the SBA before March 31. Full Story (Subscription required)
Related: Congress Gives Final Approval on Relief Package; Employee Retention Credit is 'Hidden Gem' for Businesses.