The Small Business Administration will stop accepting applications for Paycheck Protection Program loans once the processed loan volume reaches the $349 billion level authorized by the CARES Act, the SBA said in a communication to stakeholders tonight.
Once that point is reached “in the near future,” SBA said, “lenders will no longer be able to load PPP applications into the Capital Access Financial System (CAFS or E-Tran).” Loan applications received by banks but not yet submitted to SBA will not be able to be completed.
Furthermore, the agency said it is “unable to maintain a queue for PPP applications,” and “PPP loan amounts may not be adjusted by lenders within the CAFS system.” Once funds are exhausted, SBA will no longer accept applications from lenders to make PPP loans.
Based on approved PPP loan totals, it is possible that the limit will be reached tonight or early tomorrow. The American Bankers Association and the state bankers associations are strongly advocating for Congress immediately to authorize new PPP funding to meet the payroll needs of small businesses struggling during the coronavirus pandemic.
“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,” said ABA President and CEO Rob Nichols. “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.”