As of today (April 16, 2020), the Small Business Administration’s $349B Paycheck Protection Program (PPP) has officially run out of funds, meaning the money allocated by the CARES Act primarily for small business relief has been fully allocated. To date, according to news sources, the SBA approved 1,661,397 loans from 4,975 lenders; however, many more would-be borrowers have yet to complete applications. And of those who have been approved for PPP loans, only a fraction has seen funds actually hit their bank accounts due to ongoing internal processing challenges. Bottom line: the PPP, while a lifeline to some, has been a frustration to many.
As Michelman & Robinson previously reported, Congress is working to replenish PPP funding, though “politics as usual” have served to slow the process. For their part, Democrats in the Senate have pushed back on injecting another $250B into the PPP, demanding additional protections for minority- and women-owned businesses. At the same time, their Republican counterparts have rejected a Democratic proposal to add an additional $250B to the pot for hospitals, state and local governments, and food assistance funding—Republicans argue that such support is not within the original parameters of the PPP.
Suffice to say, congressional efforts to keep the PPP afloat will carry into next week. M&R will continue to monitor their progress.
This blog post is not offered, and should not be relied on, as legal advice. You should consult an attorney for advice in specific situations.