The $349 billion authorized for Paycheck Protection Program loans has been exhausted, the Small Business Administration said today, and the SBA is no longer accepting applications for PPP loans. Loan applications received by banks but not yet submitted to SBA will not be able to be completed, and the agency will not maintain a queue for PPP applications once additional funds are authorized. Any loan applications that have received an SBA authorization number will receive an SBA guaranty.
The American Bankers Association is strongly advocating for Congress immediately to authorize new PPP funding to meet the payroll needs of small businesses struggling during the coronavirus pandemic. Bankers and their small business customers can contact their lawmakers at (202) 224-3121 to emphasize that more funding is needed right away.
“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.”
