The Small Business Administration’s $349 billion Paycheck Protection Program (PPP) has officially run out of funds.
In an SBA PPP report published on Monday, April 13, over 17,000 applications and $3.75 Billion had been approved through the forgivable loan program.
The notification on the SBA’s website, states the “SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.” The loan program, which offered forgivable loans to small businesses with the requirement that most of the money goes to payroll expenses, was authorized as part of the $2.2 trillion CARES Act passed by Congress and signed into law by President Trump March 27.
Politicians, experts and bankers had been warning the program would run out by the end of this week or sooner without additional appropriated funding.
Further noted was: “SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time. The EIDL program is also providing much-needed relief to people and businesses. By law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations. SBA is urging Congress to appropriate additional funds for the Paycheck Protection Program.”
An additional $250 Billion has been proposed for use by qualifying SBA loan applicants, but Congress has been locked in a stalemate over a possible $250 billion extension, with congressional Democrats pushing for additional funding for hospitals and state and local governments. The U.S. House of Representatives are not set to meet again until May 4.
Additionally, the SBA also noted on its website that it had run out of funding for its Economic Injury Disaster Loan program, “SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.”
Click to use the following link to share your story with Majority Whip Steve Scalise if you were unable to apply for th forgivable Paycheck Protection Program loan to cover your payroll and keep your business afloat now that the program has run out of funds. https://bit.ly/34IB9aM