U.S. Government Runs Out Of Funds For Small Business Loan Program
The U.S. Small Business Administration (SBA) has told lenders and trade groups that it has stopped accepting most new applications for the Paycheck Protection Program (PPP) after tapping almost all of the $292 billion that Congress had appropriated for the small business aid program’s latest round of loans. The PPP application deadline was scheduled to end May 31, 2021.
About $8 billion does remain for community financial institutions and will continue to be processed until the funds are exhausted.
The SBA also has said that it will be able to process and fund loans for applications received before the beginning of May. It is unlikely that Congress will approve new appropriations for the PPP program, which originally was put into place in the spring of 2020 to help businesses struggling during COVID-19 related shutdowns.
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