The Small Business Administration is “currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding.”
This is the statement currently viewable on the SBA’s website after the administration announced Thursday it had hit its $349 billion limit for the program and is now out of money. The program allowed companies with up to 500 employees to receive a low-interest loan to cover up to two months of payroll and additional expenses.
If those companies were to meet certain guidelines at the conclusion of that two month period the loan would then be forgiven and essentially converted into a grant.
Local SBA preferred lenders, such as Lyon County State Bank and ESB Financial, saw a significant number of applications flow in recently from businesses seeking assistance from the program. LCSB President Brad Yount says the bank had 151 applications approved and funded before Thursday’s announcement.
While the SBA will no longer be accepting or queuing applications, Yount says the bank is.
ESB Financial Executive Vice President and Chief Lending Officer Michael Black says Thursday’s announcement did not come as a shock to him.
According to Black, ESB is encouraging businesses to complete their applications and then wait to submit them until more funds are appropriated to the program. Black says the bank was able to approve nearly 200 applications before the funds ran out.
Yount says he has recently heard conversations regarding a new $250 billion phase four stimulus package which would, if approved, cover several stimulus items, however, he is unsure how much of those funds would be made available to the PPP program. In a recent social media post, SBA Administrator Jovita Carranza urged Congress to “appropriate additional funds for the Paycheck Protection Program—a critical and overwhelmingly bipartisan program—at which point we will once again be able to protect millions more paychecks.”
If you have questions or concerns regarding the Paycheck Protection Program you are asked to visit the SBA’s website or contact your local lender.
