Pappas Calls on Congress to Make Sure PPP has Sufficient Funds to Support Small Businesses through May 31st Deadline

April 23, 2021
Press Release

Today, Congressman Chris Pappas (NH-01), who serves as the Co-Chair of the bipartisan Small Business Caucus, called on Speaker Nancy Pelosi and Republican Leader Kevin McCarthy to work with the Small Business Administration to ensure that the Paycheck Protection Program (PPP) has sufficient funds to guarantee that all eligible entities that apply through the May 31, 2021 deadline are able to receive a loan. 
 

In March, President Biden signed into law H.R. 1799, the bipartisan PPP Extension Act of 2021, which Congressman Pappas co-sponsored and worked to pass. The legislation extends the deadline for application to PPP until May 31, 2021.
 

“It is critical that Congress work with the SBA to understand the scale of this funding gap and, if necessary, swiftly appropriate additional funds for the PPP so that all entities who are eligible can receive a loan through May 31, 2021,” said Rep. Pappas in his letter to House leadership. “By doing so, we can provide employers with the peace of mind that they will be able to access the federal support they need to overcome these challenging times.”
 

Congressman Pappas, who serves as Chair of the bipartisan Small Business Caucus, has been relentless in his efforts to improve the program for small businesses in New Hampshire, including introducing legislation and leading calls for the Administration and Congressional Leadership to take action to support small businesses.

Pappas introduced bipartisan legislation to improve coordination between the Paycheck Protection Program and the Employee Retention Tax Credit to better support struggling businesses. He also called on the Treasury Department to ensure that the PPP was better tailored to meet the needs of Granite State businesses.

Pappas also called on House leadership to improve the loan conditions of the PPP and other details of the program based on hundreds of conversations he had with Granite State small businesses. These improvements were included in the Paycheck Protection Program Flexibility Act, which Pappas advocated for and helped to pass.
 

The full text of the letter can be read below or found here
 

Dear Speaker Pelosi and Leader McCarthy:

Thank you for your continued leadership to ensure our nation’s small businesses and non-profits continue to have access to the Paycheck Protection Program (PPP) through May 31, 2021. Given recent reports that PPP funds may run out before the end of May, I urge you to work with the SBA to ensure that the PPP has sufficient available funds so that all eligible entities who apply for PPP through May 31, 2021 are able to receive a loan.

Congress established the PPP under the CARES Act and has consistently provided additional funding and extended authority as our nation continued to experience severe economic impacts due to the ongoing COVID-19 pandemic. Most recently, on March 30, 2021, President Biden signed into law H.R. 1799, the PPP Extension Act, which extends the deadline for small businesses and non-profits to access the PPP to May 31, 2021.

However, in recent testimony before the Senate Committee on Small Business Entrepreneurship, Patrick Kelley, SBA Associate Administrator for the Office of Capital Access, said that while about $79 billion in funding remained for the PPP, at current rates, these funds would be expended well before the current May 31 deadline. As newly-eligible nonprofits continue to apply for PPP loans and small businesses continue to seek Second Draw loans, I believe that the PPP will remain highly subscribed and are concerned about a potential PPP funding shortfall, which would hurt the entities most in need of federal support.

It is critical that Congress work with the SBA to understand the scale of this funding gap and, if necessary, swiftly appropriate additional funds for the PPP so that all entities who are eligible can receive a loan through May 31, 2021. By doing so, we can provide employers with the peace of mind that they will be able to access the federal support they need to overcome these challenging times.

Thank you for your consideration of this request. I look forward to working with you on this effort to continue supporting our nation’s small businesses and non-profits during the COVID-19 pandemic.