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Small-business Loan ‘Lifeline’ Extended

March 25, 2021

If your real estate business continues to feel the effects of the pandemic, you now have an additional two months to apply for a loan through the Small Business Administration’s Paycheck Protection Program. On Thursday, by a bipartisan vote of 92–7, the U.S. Senate passed the PPP Extension Act of 2021, which extends the application deadline through May 31, 2021. It also gives SBA lenders an additional 30 days, through June 30, to process those applications. The bill passed the House of Representatives March 16, also by a bipartisan vote, 415–3. Since the Senate made no changes to the language of the bill, it goes directly to President Joe Biden for signature.

National Association of REALTORS® President Charlie Oppler sent support letters to both the House and the Senate, thanking the cosponsors for introducing the legislation, and also provided a letter of support to the Senate Small Business Committee, which held a March 17 hearing on the performance and impact of the PPP program.

Roughly 20% of NAR members working in residential real estate and nearly 40% of commercial members have reported taking out a PPP loan.

“The PPP has been a lifeline for many small businesses, independent contractors, and sole proprietors, and self-employed individuals since the beginning of this pandemic,” says NAR Senior Policy Representative Erin Stackley. “Many small businesses are mere weeks away from being able to function more normally,” she adds, and PPP funds “could help many cross that finish line.”

Congress appropriated $284.5 billion to the program for in the fiscal year 2021 appropriations act passed in December 2020 and an additional $7.25 billion as part of the American Rescue Plan Act, signed by Biden on March 11. It’s estimated that over $110 billion in appropriated funds is still available in the program.

Learn more about the Paycheck Protection Program.