Madam Speaker, I thank Chairwoman Velazquez, Ranking Member Luetkemeyer, and Representative Kim for joining me in introducing the bipartisan Paycheck Protection Program Extension Act. In 2 weeks, the Paycheck Protection Program, also known…
Madam Speaker, I thank Chairwoman Velazquez, Ranking Member Luetkemeyer, and Representative Kim for joining me in introducing the bipartisan Paycheck Protection Program Extension Act.
In 2 weeks, the Paycheck Protection Program, also known as PPP, application period will expire, taking away much-needed help from thousands of small businesses that are struggling to keep the doors open and employees on the payroll.
The PPP Extension Act would extend the application period for another 2 months, ensuring that those small businesses can continue to apply for critical financial assistance until May 31. It also provides an additional 30 days for the Small Business Administration to process applications submitted by May 31.
PPP loans have provided a lifeline to mom-and-pop businesses across the country, including those in my district, that are simply trying to survive an unprecedented health and economic crisis.
In Georgia alone, the Paycheck Protection Program has provided more than 260,000 forgivable loans for nearly $19 billion since the program was created last year. Without that money, we would have lost thousands more of the small businesses that make up the foundation of our communities.
I hear every day from small businesses in Gwinnett and Forsyth Counties who are simply struggling to survive. This bill has its origins in a conversation that I had with local business owners Tony Rodriguez and his wife, Ann-Carol Pence, who own Lawrenceville's Aurora Theatre.
In early February, they reached out to me, concerned about the March 31 PPP deadline. The Aurora Theatre is hoping to receive support through the shuttered venue operator grant program, but due to some delays in
launching that program, they were concerned that with the PPP application period set to end on March 31, they could potentially miss out on critical financial assistance.
While this was one of the first times I heard from businesses in my district about the March 31 deadline, it was certainly not the last. As I talked to my colleagues on both sides of the aisle, we realized we were hearing the same thing from small businesses and lenders across the country: They needed more time to make sure we are reaching as many businesses as possible.
Last year, Chairwoman Velazquez, along with Members on both sides of the aisle, made significant improvements to the PPP loans in order to protect small businesses. Recently, President Biden made changes enhancing access to the PPP loans for the smallest of small businesses, many of which are minority-owned and women-led businesses, such as the ones located throughout my district.
The data show that it is working: 73.5 percent of the loans distributed in 2021 are under $50,000, almost 5 percent higher than what that number was last year. Now is not the time to stop fighting for the mom-and-pop stores, restaurants, and businesses across the country.
Some examples of situations that this bill will address include a local pre-prepared food company that has not applied for a PPP loan because of how the loan amounts were initially calculated for sole proprietorships.
Thanks to President Biden's changes to the loan calculation formula, this business would now qualify for a forgivable loan. However, because of the March 31 deadline, some lenders are reluctant to help out because it is such a short timeframe to evaluate and process these loans.
Another performance venue in Gwinnett County was pleased to learn that the American Rescue Plan we just passed would now allow them to access both the shuttered venue operator grant program and the PPP program, but now they are scrambling to get their loan application in by March 31.
This bill allows additional time to get funding to the small businesses that need it most. This bill is supported by a number of leading business organizations, including the U.S. Chamber of Commerce, the National Federation of Independent Business, the International Franchise Association, the National Restaurant Association, and Small Business Majority, as well as over 90 additional organizations.
Last, I also want to appreciate and point out that this bill is bipartisan. In this time of deep division in our country, we have all come together to do what is right for our communities, and I hope that we can build on this moment as we continue to tackle the challenges that face our Nation.
I thank Chairwoman Velazquez, Ranking Member Luetkemeyer, Congresswoman Kim, and the House Committee on Small Business for partnering to protect small businesses.
I urge my colleagues on both sides of the aisle to support H.R. 1799, the PPP Extension Act of 2021.