The $349 billion appropriated by Congress to fund small business relief in the wake of COVID-19 has run out, according to a Thursday morning statement from the SBA:
“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.”
In the last 14 days alone, the Small Business Administration (SBA) has processed more than 14 years' worth of loans. As of Wednesday evening, April 15th, more than 1.4 million loans totaling more than $315 billion had been approved, according to the SBA.
Both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL) program have been in high demand as businesses across the country struggle to survive amidst widespread closures and stay-at-home orders.
In a statement released on April 15th, U.S. Treasury Secretary Steven T. Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza said the following:
The introduction of the small business lending program had a rocky start on April 3rd, with businesses swarming banks to apply for a piece of the aid. As The New York Times described it:
“Business owners found that applying for the money was harder than they had anticipated. Lenders had received guidance from the Treasury Department only the night before, just hours before they were to start making loans. On top of that, banks imposed their own rules on which businesses could and couldn't borrow. And many lenders, including JPMorgan Chase, the nation's largest, didn't have their websites ready for borrowers until later Friday.”
With a chaotic rollout and countless businesses left unable to apply for aid (or still waiting on the cash to arrive), the depletion of funding will no doubt leave many SMB owners confused about what to do next.
This is a developing story. Please check back on our blog for updates, and contact your small business tax or accounting professional for help with finding financial relief.
About Sonu Shukla, CPA, CFP
Sonu Shukla is a Certified Public Accountant as well as Certified Financial Planner. He believes in proactive tax planning and has the skills, education and experience to demonstrate passionately planned financial strategies. His firm tailors highly efficient tax plans for his small business clients, all in a one on one environment where he and the client can bounce ideas around until every detail is worked out. Located in Orlando, FL, he services all of Florida.
