Extension of the Paycheck Protection Program is a Victory for Small Businesses, But More Help is Needed

"Small businesses will be relieved that Congress has moved quickly to pass the PPP Extension Act of 2021. It is vital that we extend the application window for the Paycheck Protection Program (PPP) because we know that many small business owners are still applying for funds, or already applied and are waiting for their application to be approved or are hoping to receive desperately needed capital soon. 

While PPP is critical, we also have to be honest about its limitations. The new changes to PPP, while much-needed, left behind sole proprietors who already applied for PPP. And the program will not single-handedly rescue small businesses on the brink of closure, nor will it revive those that are already gone. Small Business Majority's research found that 40% of small businesses will need grants or zero interest loans this year to survive, and the numbers are even higher for entrepreneurs of color. What's more, 91% want lawmakers to pass legislation providing direct grants to small businesses. 

This is why we're continuing to call on Congress to provide more grant funding for small businesses, as well as to provide long-term recovery loan programs. The American Rescue Plan was an important first step, with $15 billion allocated for grants and additional funding for small business loans, but we know that money will dry up quickly. Much more is needed to support our most vulnerable small businesses on their road to recovery. If more isn’t done soon, Main Street businesses will continue to close their doors for good."