In a letter to Congress dated March 1, 2021, Womply has joined more than 500 national trade organizations, small business organizations, chambers of commerce, businesses, sole proprietors, and independent contractors in urging lawmakers to extend the PPP loan program until at least June 30, 2021.
Recent changes to the PPP rules under the Biden administration have been announced with the intent of serving a greater number of America’s small businesses in allowing them access to vital, forgivable stimulus loans. However, these same changes have created a difficult situation for SBA lenders and loan facilitators who are scrambling to update their processes and systems to align with the new rules quickly enough to allow these struggling businesses, contractors, and sole proprietors to submit their PPP applications before the current March 31, 2021 deadline.
You can see the full text of the letter below.
Content of letter is as follows:
March 1, 2021
Dear Speaker Pelosi and Leaders Schumer, McConnell, and McCarthy:
Thank you for supporting America’s small businesses throughout the COVID-19 pandemic. The CARES Act, Omnibus COVID Relief Deal, and tireless efforts of many Federal employees saved millions of small businesses and tens of millions of jobs.
As you know, the Paycheck Protection Program (PPP) is scheduled to end on March 31. We urge Congress to extend the PPP until at least June 30th, 2021.
Last Monday, President Biden and the Small Business Administration (SBA) announced changes that are intended to make the PPP more inclusive and accessible to under-served businesses. We applaud the direction of these changes and the renewed effort to build upon and improve the PPP.
However, these changes will make it even harder for the millions of businesses working on PPP applications to submit them to the SBA before the deadline. Some of the undersigned lenders already have hundreds of thousands of backlogged PPP applications. Many applications will require revisions after new rules are published this week. And another wave of applications is widely expected.
There is simply not enough time in the next month for the SBA and ~5,000 lenders to convert rule changes into technical, content, support, and compliance updates and then get new applicants processed, approved, and funded. Therefore, many eligible businesses, independent contractors, sole proprietors, and self-employed people will not be approved before the March 31st, 2021 deadline.
A diverse set of organizations, companies, and individuals are working hard to achieve the goals set forth by Congress and supported by the President. Massive outreach efforts are underway to reach the smallest businesses, those in low-and-middle-income communities, and any who have been under-served to date.
Data, technology, and human capital are being applied to help every eligible small business get funding. Many organizations are eager to partner with the SBA and to continue investing to help businesses get access.
We all want small businesses to survive so we can rebuild our communities. Therefore, we ask that you extend the Paycheck Protection Program until at least June 30, 2021.