Funding Circle US will continue offering Paycheck Protection Program (PPP) loans for an additional two months after the US Senate voted to extend the scheme.
The peer-to-peer business lending platform’s US division was accredited to PPP in April.
PPP is one of a host of measures introduced by the US government to support businesses during the pandemic. More than $700bn (£50.87bn) has been deployed through the 100 per cent state-backed scheme to small- and medium-sized enterprises in the US.
“Congress has just voted to extend the #PaycheckProtectionProgram,” Funding Circle US said in a LinkedIn post.
“Upon the President’s approval, the application submission deadline will be extended to 31 May 2021.
“However, the SBA estimates that remaining funds will be exhausted by mid-late April. We will continue processing new and existing applications until funding is exhausted.”
An extension from the deadline of 31 March to 31 May is just awaiting Presidential sign-off after the Senate voted 92-7 in favour of the PPP Extension Act 2021 and the House approved this by a 415-3 vote last week.
Funding Circle said in its full-year financial results yesterday that it will expand its core loan product in the US once PPP ends, as well as originating government guarantee loans through the small business administration programme on behalf of banks.