The PPP Extension Act pushes the application deadline back from March 31 to May 31 for small businesses seeking first- and second-round loans that can be forgiven if they're used for certain expenses including payroll and rent. The law also gives the Small Business Administration an additional month to process applications.
"We're pushing lenders to raise their game and provide more help to many small businesses," Biden said at an Oval Office signing ceremony. "Nearly 90,000 business owners are still in line, and there's money left. Without somebody signing this bill today, there are hundreds of thousands of people who could lose their jobs, and small and family businesses that might close forever."
Small businesses employ nearly half of all American workers, Biden said, adding that the PPP had not been as accessible for many Hispanic and Black entrepreneurs. Businesses with established banking relationships and accounting processes had an easier time obtaining funds, especially in the program's early days last year.
The extension proposal was backed by Sens. Ben Cardin, D-Md., Susan Collins, R-Maine, and Jeanne Shaheen, D-N.H.
"The program must continue to be a lifeline for small businesses and nonprofits," said Cardin, who chairs the Small Business Committee, in a statement. "It is vital that we in Congress continue working in a bipartisan manner to fine-tune PPP in the weeks ahead to make the program more fair and equitable."
Both chambers of Congress overwhelmingly approved the bill in recent weeks. Trade groups had pushed for an extension, citing technical issues including with taxpayer-identification numbers that have led to holdups and rejections for applicants.
The Senate voted 92-7 on March 25 with some Republicans in opposition after the chamber voted down GOP amendments that would have barred the SBA from setting special priorities for processing applications and prohibited loans for people recently convicted of felonies or civil disorders.
The bill passed the House on March 16 with a 415-3 vote. The sponsor, Rep. Carolyn Bourdeaux, D-Ga., said in a statement Tuesday that enactment meant "allowing more of our small businesses the opportunity to access critically needed funds to keep their employees on the payroll."
The SBA reported Sunday that it has approved 8.7 million PPP loans worth $734 billion, with 3.6 million of those approvals coming since the new year. About 2.3 million loans have already been forgiven.
More than 14,000 law firms, including nine of America's largest, received PPP loans by December, the SBA reported.
Nearly 500 people face federal fraud charges related to the PPP and other pandemic relief programs, the U.S. Department of Justice said last week.
One of the most memorable cases came last year when federal prosecutors accused a North Carolina insurance executive of seeking $6 million in PPP funds through a "Game of Thrones"-themed scheme. That case has not yet been resolved.
--Additional reporting by Sierra Jackson. Editing by Ellen Johnson.
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