Congress Extends PPP But Program Funds Running Low

WASHINGTON, DC – For many small and rural businesses, the Paycheck Protection Program (PPP) authorized last year by Congress and administered through the Small Business Administration (SBA) provided a lifeline in a time of nationwide lockdowns. For those who received the funds and met the government requirements, their PPP loans were forgiven. In an effort to bring more small businesses into the popular program, Congress extended the deadline for applying for PPP until June 30, 2021. Now the SBA is warning Congress that with nearly two months still remaining, there is less than $70 billion in the account to help qualifying businesses. Though some in Congress are looking at another influx of cash to the program, groups like the National Federation of Independent Business (NFIB) and the U.S. Chamber of Commerce argue the program has limited future interest and therefore should be allowed to end. Either way, government stimulus, married with a general reopening of businesses lead the Federal Open Market Committee (FOMC) to project substantial growth in the real gross domestic product (GDP) this year. The FOMC though is concerned about prospects for 2022 and is adopting a more conservative, even diminished outlook due to the uncertainties with coronavirus.
(SOURCE: All Ag News)