Under the new law, many small companies will receive loans under the “America’s Rescue Plan”
On March 30, President Joe Biden signed the PPP Extension Act of 2021. The three letters “P” that begins the title of the law stands for “Wage Protection Program”. This program is aimed primarily at helping small businesses. The law was ratified in Congress last week when the Senate passed it by an overwhelming majority, following the House of Representatives.
From January through March, more than three million small businesses received loans from the federal Small Business Administration (SBA) totaling nearly $ 200 billion under this program. Now, in accordance with the new law, the program, originally designed for a period until March 31, is extended until May 31. This means that SBA will now have time to issue more loans for the development of small businesses. The federal government received funds for this program as part of the “America’s Rescue Plan”, for which Congress, under pressure from the Biden administration, allocated $ 1.9 trillion.