The Small Business Administration’s Paycheck Protection Program and the Economic Injury Disaster Loan Program have officially run out of money.
By law, the SBA may not issue new loan approvals once the programs experience a lapse in appropriations. Currently, the SBA is unable to accept any new applications for the Paycheck Protection Program or the Economic Injury Disaster Loans (EIDL)-COVID-19 related assistance based on available appropriations funding. They also cannot enroll new PPP lenders at this time. Applicants who have already submitted their applications for the EIDL will continue to be processed on a first-come, first-served basis.
Though the rollout of the PPP had some glitches, banks worked to meet the needs of their customers with an unparalleled pace of loan approvals. A little more than a week after applications were first available, more than 1.03 million loans were approved by 4,664 lenders for a total amount of $247.5 billion. U.S Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administration Administrator Jovita issued a statement on April 15th saying that the SBA has processed more than 14 years’ worth of loans in less than 14 day.
The SBA is urging Congress to appropriate additional funds for these loan programs, at which point they will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks and small business owners.
As we are learning to navigate through these times of uncertainty and adjusting to our new normal, we here are at The Foresight Companies want to be your go-to source for all topics related to your business operations.
Please visit our COVID-19 new Business Operations Resource Center frequently as we continue to update as changes are occurring.
If you have any questions or concerns please do not hesitate to pick up the phone and give one of us a call at 1-800-426-0165.
*Please note that as information is updated and modified, terms and conditions are subject to change.
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