WASHINGTON–The Paycheck Protection Program has exhausted its funding and stopped accepting most new applications. The program ran out of its congressional appropriation of $292-billion four weeks before it was slated to end.
A sliver of the funds remains, held in reserve for lenders that serve underserved communities, the Small Business Administration said. Those lenders will be allowed to process qualifying applications until the remaining funds are also exhausted.
"After more than a year of operation and serving more than eight-million small businesses, funding for the bipartisan Paycheck Protection Program has been exhausted," an SBA spokesperson told FOX Business.
Statement from NAFCU
“The SBA’s paycheck protection program has been a vital financial lifeline for our nation’s small businesses amid the coronavirus pandemic,” said NAFCU President and CEO Dan Berger. “Credit unions have been proud to assist our nation’s smallest, hardest hit businesses to receive the funding they needed to overcome financial hardship. NAFCU will continue to support its MDI and CDFI members who remain eligible to make PPP loans. Our industry will continue to put the interests of our members first, both now and as our economy continues to recover from the pandemic.”
No New Funds
While Congress recently voted to extend the program to May 31 from March 31, it did not appropriate additional funding, as lawmakers expect the increasing rate of vaccinations will lead to a roll back in business restrictions.
The PPP has distributed roughly $780.4 billion in forgivable loans to some 10.78 million businesses, according to the government.