WASHINGTON, D.C. – Today, bipartisan legislation co-sponsored by U.S. Senator Thom Tillis (R-NC) to help small employers retain access to forgivable Paycheck Protection Program (PPP) loans was signed into law. The bill was endorsed by nearly 100 organizations, including the NFIB and the U.S. Chamber of Commerce.

In 2020, 129,289 PPP loans were distributed to North Carolina businesses for more than $12.2 billion, and 72,312 PPP loans have been distributed for more than $4.2 billion in 2021. In total, 201,601 PPP loans have been distributed to North Carolina businesses for more than $16.4 billion.

“I was proud to support the inclusion of the Paycheck Protection Program in the CARES Act last spring, and the program saved millions of jobs so Americans could still receive a paycheck during the pandemic,” said Senator Tillis. “As we continue to make progress vaccinating Americans and returning to life as normal, these additional two months will ensure any small business who needs assistance can receive it until the end of May. I applaud my colleagues for passing this legislation on a bipartisan basis and sending it to the President’s desk to be signed into law.”

The PPP Extension Act of 2021 will:

• Extend the deadline for PPP applications for another two months to May 31, 2021; and
• Provide an additional 30-day period for the SBA to process applications that are still pending. 

Senator Tillis strongly supported the Paycheck Protection Program, which became law as part of the CARES Act last year. In 2020, more than five million small employers received forgivable PPP loans, helping to sustain more than 50 million jobs. Senator Tillis also supported the inclusion of $284.5 billion in the December COVID-19 relief package to reopen the program. According to the latest data from SBA, 3.1 million PPP loans have been approved in 2021, totaling nearly $196 billion.

Under the December law, small businesses that employ 300 or fewer people and experienced a 25 percent or greater gross revenue loss between comparable periods in 2019 and 2020 due to COVID-19 are eligible to apply for a second forgivable PPP loan. In addition, forgivable overhead expenses are expanded to include supplier costs and investments in facility modifications and personal protective equipment needed to operate safely. In recognition of the severe impact that COVID-19 mitigation measures have had on the hospitality sector, in particular, the formula used to calculate the maximum forgivable loan amounts for second draw loans is enhanced for restaurants and hotels to equal 3.5x average monthly payroll. Further, small business owners that did not receive a PPP loan in the first round are also eligible to apply. Additionally, under the American Rescue Plan, which added an additional $7.5 billion in funding to the program, larger nonprofits with multiple locations are now eligible for PPP on a per-location basis.

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