The publication is reproduced in full below:
PPP EXTENSION ACT OF 2021
Ms. VELAZQUEZ. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 1799) to amend the Small Business Act and the CARES Act to extend the covered period for the paycheck protection program, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1799
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``PPP Extension Act of 2021''.
SEC. 2. EXTENSION OF COVERED PERIOD FOR PAYCHECK PROTECTION
PROGRAM.
(a) In General.--Section 7(a)(36)(A)(iii) of the Small Business Act (15 U.S.C. 636(a)(36)(A)(iii)) is amended by striking ``March 31, 2021'' and inserting ``June 30, 2021''.
(b) Funding.--Section 1102(b)(1) of the CARES Act (Public Law 116-136), as amended by section 323 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act
(Public Law 116-260), is amended by striking ``March 31, 2021'' and inserting ``June 30, 2021''.
(c) Restriction.--From June 1, 2021, through June 30, 2021, the Administrator of the Small Business Administration shall not accept new lender applications for loans under paragraph
(36) or (37) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and shall only process such lender applications that have been submitted to the Administrator before June 1, 2021.
SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.
(a) In General.--The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)).
(b) Senate Paygo Scorecards.--The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for purposes of section 4106 of H. Con. Res. 71 (115th Congress).
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from New York (Ms. Velazquez) and the gentleman from Missouri (Mr. Luetkemeyer) each will control 20 minutes.
The Chair recognizes the gentlewoman from New York.
General Leave
Ms. VELAZQUEZ. Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the measure under consideration.
The SPEAKER pro tempore. Is there objection to the request of the gentlewoman from New York?
There was no objection.
Ms. VELAZQUEZ. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I rise in support of the bill before us today, H.R. 1799, the PPP Extension Act of 2021.
Let me begin by saying that, throughout my tenure on the committee, we have been able to set aside our differences and work together on behalf of small businesses. I am committed to doing that again this Congress. Our small firms deserve nothing less.
I want to welcome our new ranking member, Mr. Luetkemeyer, back to the committee. I look forward to working with him this Congress to provide our Nation's entrepreneurs with meaningful assistance. I would also like to thank the ranking member for working with me in a bipartisan manner to further extend the Paycheck Protection Program for small businesses that are still struggling.
Over the past year, the PPP helped millions of small business owners retain employees and meet business expenses as economic activity slowed down during the pandemic.
Seeing that value and impact, Congress, on a bipartisan basis, extended the program multiple times, including a brief extension last summer and, most recently, through March 31 under the Economic Aid Act.
We heard last week that some participating lenders have begun to wind down their PPP operations in advance of this deadline, limiting the relief options available to entrepreneurs at a time when many still need help.
I understand why this is. Lenders want to be able to focus their efforts on processing existing applications and work through thousands of holds, which remain outstanding on these applications.
But I must stress that far too many small businesses, especially the smallest of the small, remain in desperate need for relief. This is simply not the time to let this valuable program expire, especially as thousands of timely loan applications are still sitting in SBA's queue.
That is why I am pleased the bill before us today takes into account the arguments we have heard from all sides, both the lending community and the small business owners in communities like mine, who are still searching for help.
Specifically, today's bill extends the application deadline to May 31, giving employers an additional 2 months to apply for PPP loans. It gives the SBA an additional 30 days to review, process, and approve loan applications submitted by the May 31 deadline.
This approach is supported by a coalition of over 90 groups, representing virtually all sides of the small business economy, including local chambers of commerce, retail and other businessowner associations, and the lending community.
I would like to reiterate my thanks to Mr. Luetkemeyer and his team for their cooperation on securing this important achievement for America's small businesses. I also want to thank two first-term Congresswomen on our committee, Ms. Bourdeaux and Mrs. Kim of California, for leading the way at the committee level on these discussions and for introducing this important bill.
Madam Speaker, I urge my colleagues to support it, and I reserve the balance of my time.
Mr. LUETKEMEYER. Madam Speaker, I yield myself such time as I may consume. I rise in support of H.R. 1799, the PPP Extension Act of 2021, as amended.
The Paycheck Protection Program has proven to be a successful rescue vessel for millions of small businesses across the country. When COVID-
19 wiped out their operations, their plans, and their next steps, the PPP provided stability and confidence to small businesses in a time of darkness.
With over two rounds of funding, the program has provided 7\1/2\ million loans for approximately $687 billion. According to the SBA's own statistics, the program assisted or saved roughly 50 million American jobs from April of last year to August of last year.
This has been a monumental task for the SBA and the Department of Treasury. However, more work needs to be done to ensure this program can wrap up smoothly for small businesses and lenders.
Currently, PPP loans are facing lengthy delays as error codes force multiple back-and-forth conversations between small businesses, lenders, and the SBA. It is these cross-checks that are creating uncertainty as to how the loans will proceed.
Complicating this even further, the PPP is set to expire 2 weeks from tomorrow, and the SBA is reporting that the end date will prevent all loans that are currently in the pipeline from being processed.
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Under no circumstances should an American small business that applied for a PPP loan have their loan discarded due to a bureaucratic technical delay at the SBA. Simply put, if they completed their PPP paperwork on time, their loans should be considered.
To correct this, H.R. 1799, the PPP Extension Act, provides a 30-day exclusive window for the SBA to fully process and consider all PPP applications that are received before the program concludes.
Additionally, given the current demand for the PPP and the billions of dollars remaining within the program, H.R. 1799 extends the application window for 60 days.
As a reminder, Congress reformed and replenished the PPP in December with the Consolidated Appropriations Act, providing the program with
$284.5 billion. This funding should be reserved solely for American small businesses and should remain available to them through a program that is proven to be successful.
I thank Chair Velazquez for working in a collaborative manner with me to ensure the program remains available to the hardest-hit small businesses through May 31 and that the SBA will have enough time to fully consider and address all error codes.
Additionally, I look forward to working with Chair Velazquez to address other PPP issues in the coming weeks.
I applaud the gentlewoman from California (Mrs. Kim) and the gentlewoman from Georgia (Ms. Bourdeaux) for working efficiently and in a bipartisan manner to address these issues that are creating uncertainty across the Nation.
I urge and recommend all of my colleagues to support H.R. 1799, and I reserve the balance of my time.
Ms. VELAZQUEZ. Madam Speaker, I yield such time as she may consume to the gentlewoman from Georgia (Ms. Bourdeaux).
Ms. BOURDEAUX. 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.
Mr. LUETKEMEYER. Madam Speaker, I yield such time as she may consume to the gentlewoman from California (Mrs. Kim).
Mrs. KIM of California. Madam Speaker, I thank Ranking Member Luetkemeyer for yielding. I thank Representative Luetkemeyer and Chairwoman Velazquez for their leadership on the Small Business Committee. I look forward to working with all of them to strengthen small businesses across the country.
I rise today in strong support of H.R. 1799, the Paycheck Protection Program Extension Act of 2021. I was proud to introduce this bipartisan bill with Representative Carolyn Bourdeaux, Ranking Member Luetkemeyer, and Chairwoman Velazquez to extend the PPP deadline for new applications from March 31 to May 31, and to provide the Small Business Administration an additional 30 days to process PPP applications.
Much of the importance of why this bipartisan legislation is needed was already spoken about, but I think it is important, so I am going to say a few words about the State of California that I represent.
Forty thousand small businesses have closed in California during the COVID-19 pandemic, and half of those closures are permanent. The Paycheck Protection Program has been a lifeline for small businesses to keep their doors open as we safely reopen our communities.
As the Biden administration announced five changes to PPP on February 22, the looming March 31 deadline does not give our small businesses the time to adjust to the new guidance listed by the SBA. This bill provides small businesses and lenders with the time needed to process PPP loans and adjust to the recent changes.
As a small business owner myself, I understand the challenges that small businesses face each day. Our bipartisan bill provides Main Street with the opportunity to overcome the pandemic and thrive.
Madam Speaker, I urge my colleagues to support H.R. 1799 and put Main Street on a path to recovery.
Ms. VELAZQUEZ. Madam Speaker, I reserve the balance of my time.
Mr. LUETKEMEYER. Madam Speaker, I yield such time as he may consume to the gentleman from Minnesota (Mr. Hagedorn).
Mr. HAGEDORN. Madam Speaker, I thank my friend from Missouri for yielding.
Madam Speaker, I rise today in support of H.R. 1799, the PPP Extension Act of 2021.
This targeted, bipartisan 60-day Paycheck Protection Program extension is exactly the type of relief that Congress should be focused on providing. This bill contrasts sharply with the nearly $2 trillion partisan monstrosity of progressive wish list policies this body passed just a week ago.
With optimism on the vaccine front, Governors around the country finally loosening their arbitrary restrictions on small businesses and schools, and $1 trillion from previous relief measures still unspent, this bill is a responsible and appropriate way to ensure relief reaches our small businesses that are most in need. Our small businesses must have the tools necessary to compete and contribute to our local economies as we move past this pandemic.
Ms. VELAZQUEZ. Madam Speaker, I reserve the balance of my time.
Mr. LUETKEMEYER. Madam Speaker, I yield such time as she may consume to the gentlewoman from New York (Ms. Tenney).
Ms. TENNEY. Madam Speaker, I rise today to support H.R. 1799, the Paycheck Protection Program Extension Act of 2021.
This bipartisan legislation will extend the PPP application period, allowing the Small Business Administration more time to process loans. The PPP has been a vital tool for small businesses across the country and throughout New York's 22nd Congressional District.
Extending the application period will give small business owners the tools they need to continue paying their employees and keep their doors open, helping to reopen our economy even faster.
In my home State of New York, PPP has provided 140,000 loans, totaling $12 billion, and saved hundreds of thousands of jobs. PPP has been an effective, bipartisan COVID-19 relief program, and I am pleased to cosponsor this legislation. It will extend relief to small businesses that need it the most.
As a member of the House Small Business Committee, one of my top priorities in Congress is to deliver targeted relief to families and small businesses across New York's 22nd District. H.R. 1799 does just that. It will ensure that the remaining $120 billion in PPP funds under the CARES Act gets to the small businesses that desperately need it.
As we look to reopen our economy and get back to normal after a tremendously difficult year, particularly in my district, where over 94 percent of the jobs are created by small business owners, this will make all the difference.
I thank Chairwoman Velazquez, my friend from New York; Ranking Member Luetkemeyer; and everyone who is joining on this legislation. I appreciate your leadership. As a small business owner, I am grateful.
Ms. VELAZQUEZ. Madam Speaker, I have no further speakers, and I am prepared to close.
Mr. LUETKEMEYER. Madam Speaker, I yield myself the balance of my time.
Madam Speaker, through no fault of their own, small businesses were forced to change how they operated in the face of COVID-19. Some adapted; some had to change their product lines; and unfortunately, some had to close.
As a response, Congress created the bipartisan Paycheck Protection Program. Its impact and effectiveness have been instrumental to the small business economy.
With technical difficulties plaguing applications and a fast-
approaching deadline, H.R. 1799 provides a targeted, straightforward approach to addressing these issues.
H.R. 1799 will extend the PPP for 60 days through May 31 and extend a 30-day exclusive window to the SBA in order to address all outstanding PPP applications.
The program was always meant to be temporary assistance to struggling small businesses. The PPP Extension Act will provide small businesses and lenders the confidence they need while also creating a plan for a smooth conclusion of the program.
As America continues to open up and recover, small businesses will drive our economic recovery forward.
Madam Speaker, I would be remiss if I didn't point out that this bill stands as one of the most impactful bipartisan pieces of legislation to advance in Congress this year. I thank Chairwoman Velazquez for her sincere efforts and hard work on this. I look forward to working with her, on a bipartisan basis, on other issues for the remainder of our term here. And I hope that this bipartisan product will serve as a prime example of what can get done in Washington when both sides come together and talk through the issues.
Madam Speaker, I recommend and urge my colleagues to support H.R. 1799, and I yield back the balance of my time.
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Ms. VELAZQUEZ. Madam Speaker, with over 95 million COVID-19 vaccine doses administered as of last week, the country is finally starting to see the light at the end of the tunnel.
Entrepreneurs are feeling more hopeful that if they can just get through the rest of 2021, that 2022 can be a year of growth for them.
But, put simply, the small business economy is not there yet, and many of the smaller firms continue to report a need for economic relief.
Today's 2-month extension of the PPP application deadline, from March 31 to May 31, will help small firms access much-needed relief to meet their expenses and put them in a position to fully reopen as soon as it is safe to do so. The additional 30-day period will give the SBA the flexibility it needs to process and approve the loans submitted by the new May 31 deadline.
Once again, I thank Ms. Bourdeaux of Georgia and Mrs. Kim of California for their leadership on this important issue.
I also thank the ranking member, Mr. Luetkemeyer, for his unwavering commitment to our Nation's 30 million small businesses and his bipartisan cooperation on this bill. I look forward to working with him on legislation that will provide a retroactive fix for Schedule C borrowers and also allow farmers and ranchers to use gross income to maximize PPP assistance.
Madam Speaker, I encourage all my colleagues to vote ``yes,'' and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the gentlewoman from New York (Ms. Velazquez) that the House suspend the rules and pass the bill, H.R. 1799, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds being in the affirmative, the ayes have it.
Mr. BIGGS. Madam Speaker, on that I demand the yeas and nays.
The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 8, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this motion are postponed.
____________________
SOURCE: Congressional Record Vol. 167, No. 49
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