Paycheck Protection Program on Hold as Funds Drained

WASHINGTON, DC – The $349 billion authorized for Paycheck Protection Program (PPP) loans has been exhausted. As of Thursday morning, the Small Business Administration (SBA) says they are no longer accepting applications for PPP loans. Loan applications received by banks but not yet submitted to the 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, however, will receive an SBA guaranty. The American Bankers Association (ABA) is strongly advocating for Congress immediately to authorize new funding to meet the payroll needs of small businesses struggling during the coronavirus pandemic. “ABA President and CEO Rob Nichols says “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.”