The U.S. Small Business Administration has stopped accepting new Paycheck Protection Program applications from most lenders, almost a full month before the $292 billion program’s application deadline.
The SBA informed lenders Tuesday afternoon that the PPP general fund was out of money and that the only remaining funds available for new applications are $8 billion set aside for Community Financial Institutions, which typically work with businesses in underserved communities.
If you applied and haven’t heard back, don’t fret just yet. The agency said it also has set aside $6 billion for PPP applications still in review status or needing more information due to error codes.
The SBA explained it this way:
“After more than a year of operation and serving more than 8 million small businesses, funding for the bipartisan Paycheck Protection Program has been exhausted.
“The SBA will continue funding outstanding approved PPP applications, but new qualifying applications will only be funded through Community Financial Institutions, financial lenders who serve underserved communities. The SBA is committed to delivering economic aid through the many COVID relief programs it is currently administering and beyond.”
In March, Congress extended the PPP application deadline to May 31 — two months after the original end date. Additional funds were not appropriated, however. And it is unclear if more money will be added to the program.
On Monday, the SBA said it had approved more than 5.6 million PPP loans totaling more than $258 billion from the program’s reopening Jan. 11 through May 2.
Just over $200 million of the loans went to those participating in the program for a second time. First-time PPP loans accounted for $57 billion.