SBA Announces PPP Loan Funds DepletedApril 16, 2020
On Wednesday evening, April 15, the U.S. Small Business Administration and Treasury Department announced that funding for the Paycheck Protection Program (PPP) loans had been depleted. NSBA has continued to warn lawmakers of the high demand for these loans among America’s hard-hit small businesses and is calling on Congress to quickly appropriate more funds to SBA’s lending programs.
UPDATE: As of Thursday, April 16, SBA is no longer processing PPP or EIDL loans due to reaching their statutorily-allowed lending cap.
Below is a statement from NSBA President and CEO Todd McCracken.
“At the end of March, Republicans and Democrats set aside partisan bickering to enact stimulus to help America’s drowning small-business community, and we need them to do so again without delay.
“Adding insult to injury is the fact that the very smallest of businesses, self-employed, sole proprietors and independent contractors, were unable to begin applying for the program until late last week, and only yesterday were banks given guidance on how to process these loans. This is the polar opposite of the intent in crafting the small-business piece of the CARES Act.
“Despite some serious–if not entirely unexpected given their massive scope and minimal turnaround time–hiccups in the roll-out of the lending programs, they are and will continue to provide critical assistance. We cannot turn our backs on the millions of small businesses facing protracted closures, employee absences and plummeting customer demand due to no fault of their own.
“We have said from the start: maintaining cash-flow and liquidity is essential to a vibrant small-business community which funds, drives and fosters all of our communities. Lawmakers should not be in the business of picking winners losers: all small businesses deserve access to assistance, not just those lucky enough to get their applications processed before mid-April. Absent prompt action, we could be at the start of a very painful, long economic downturn.”
Please click here to access NSBA’s resource page on COVID-19 which includes a new poll, small-business profiles and much more.