[Congressional Record Volume 167, Number 49 (Tuesday, March 16, 2021)]
[House]
[Pages H1373-H1376]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       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?

[[Page H1374]]

  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.

                              {time}  1530

  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

[[Page H1375]]

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.

[[Page H1376]]

  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.

                              {time}  1545

  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.

                          ____________________