As of this morning, the federal Paycheck Protection Program (PPP) has run out of money. This $349-billion, U.S. Small Business Administration loan initiative was created under the $2.2-trillion CARES Act to help small business keep employees on their payrolls for eight weeks. If the money is used for payroll, rent, mortgage interest, or utilities, the loan will be forgiven.
Additionally, money for the SBA’s Economic Injury Disaster Loans program has also been depleted. Under this initiative, low-interest Loans of up to $2 million were being provided to companies to assits them with their working capital needs directly resulting from COVID-19. Another component to this program was an advance of up to $10,000.
In a joint statement from U.S. Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administration Administrator Jovita Carranza, the two are urging Congress to “appropriate additional funds for the PPP —a critical and overwhelmingly bipartisan program—at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks.
“The high demand we have seen underscores the need for hardworking Americans to have access to relief as soon as possible. We want every eligible small business to participate and get the resources they need,” they said.
The SBA has processed more than 14 years’ worth of loans in less than 14 days. “The PPP is saving millions of jobs and helping America’s small businesses make it through this challenging time. The EIDL program is also providing much-needed relief to people and businesses,” Mnuchin and Carranza said in the joint statement.
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