PPP Funding From SBA Dries Up
General Funds Run Out Almost A Month Before Program’s Application Deadline
The U.S. Small Business Association (SBA) stopped accepting new Paycheck Protection Program (PPP) applications from lenders as of May 5, 2021. The $292 billion program’s funds ran out almost a full month before the application deadline.
The SBA stated that it set aside around $6 billion PPP applications still in review or needing more information due to error codes. The only funds remaining for new applicants is the $8 billion set aside by the SBA for community financial institutions (CFIs). These lending institutions mostly work with businesses in underserved communities.
The PPP application deadline was extended in late March by Congress to give both lenders and the SBA time to resolve these errors, which held up nearly 200,000 applications in the PPP program. The PPP Extension Act of 2021 didn’t include additional funding for the current round of the PPP, which provided $290 billion in forgivable loans for small businesses and non-profit organizations that suffered due to the COVID-19 pandemic.
To learn more about what this means for you and find other resources available to your business, contact Adams Brown.