Funding for Paycheck Protection Program is Exhausted
The $349 billion in funding set aside for small businesses as part of the Paycheck Protection Program (PPP) has been exhausted. That’s according to the Small Business Administration (SBA). Furthermore, they are not accepting any more applications for PPP loan program. Loan applications received by banks that haven’t been sent to the SBA will not be processed and completed. The agency will not maintain a backlog for the applications once additional funds are authorized. However, loan applications that did receive an authorization number will get an SBA guaranty.
While this is taking place, Congress is still debating the terms and funding details to authorize additional funding for the program. The American Bankers Association is advocating for Congress to immediately to authorize new PPP funding in order to demand of small businesses struggling during the coronavirus pandemic. It’s urged that small business customers contact their lawmakers at (202) 224-3121 to voice their concerns and to say that more funding is needed immediately.
“America’s banks were standing by their small business customers before the SBA’s Paycheck Protection Program and will stand by them now that PPP money is nearly depleted, which we hope is only temporary,” ABA President and CEO Rob Nichols said last night. “Banks of all sizes will continue to work closely with small businesses in their communities to assess their options going forward. Given the success of PPP in getting money into the hands of small businesses quickly, we still believe that the best option is for Congress to appropriate additional federal funds as soon as possible given the potential economic damage to small businesses and their millions of employees from this pandemic.”