SBA Paycheck Protection Program runs dry, as expected

The Small Business Administration’s (SBA) $349 billion Paycheck Protection Program (PPP) relief fund officially ran dry Thursday morning, as expected. 

“The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding,” according to the SBA’s PPP page. Small businesses that receive the forgivable loans are allowed to use the funds to meet payroll costs and pay mortgage interest, rent and/or utilities payments. 

The SBA approved 1.7 million loans before the fund ran out, with Virginia banks making 40,371 loans totaling $8.72 billion. Congress is still negotiating to replenish the fund. Treasury Secretary Steve Mnuchin had recommended making another $250 billion available.

“As Congress continues to work on finding bipartisan agreement for additional funding, SBA must offer — at a minimum — more information to small business owners across the country so that they have more clarity regarding this process and its timeline, and can make informed decisions about how to pay their employees and keep their doors open during this health crisis,” Sen. Mark R. Warner says. “Frankly, regardless of the issues that may be preventing this relief from coming through as fast as it could be, business owners deserve some transparency in such a chaotic and uncertain time.”

The SBA opened applications for the PPP loans opened in early April ,when there were only 1,700 SBA-approved lenders in the United States. In 12 days, that number nearly tripled to 4,700 SBA-approved lenders, Virginia Bankers Association President and CEO Bruce Whitehurst said.