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 SBA 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 and state bankers associations, including the Utah Bankers Association are strongly advocating for Congress immediately to authorize new PPP funding to meet the payroll needs of small businesses struggling during the coronavirus pandemic. Small business customers can contact their lawmakers at (202) 224-3121 to emphasize that more funding is needed right away.
ABA President and CEO Rob Nichols hopes that the depletion of funds is only temporary. "America’s banks were standing by their small business customers before the SBA’s Paycheck Protection Program and will stand by them now.” Nichols added. “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.”
U.S. Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administration Administrator Jovita Carranza are also urging Congress to approve additional funds for the PPP. "We urge Congress to appropriate additional funds for the Paycheck Protection Program--a critical and overwhelmingly bipartisan program--at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks," they said in a joint statement. "The high demand we have seen underscores the need for hardworking Americans to have access to relief as soon as possible. We want every eligible small business to participate and get the resources they need."