America’s Small business The administration runs out of money after reaching its limit of $ 349 billion. According to a statement issued yesterday on the SBA website, it will no longer be able to issue new loans.
The program was designed to help companies suffering difficulties as a result of the closure of the coronavirus pandemic. In addition, however, in addition to being unable to accept new applications for the Paycheck Protection Program, the SBA also said that it was also unable to enroll new PPP lenders.
Having been passed by Congress last month, the PPP was designed to allow employers to keep their payroll up to date, without the need to fire or lay them off during the current crisis. The Paycheck Protection Program was just one part of a $ 2 trillion Coronavirus Relief, Relief and Economic Security Act (CARES Act),
No more money
Although the SBA has stated that 1.3 million PPP loans have been approved to date yesterday, worth more than $ 296 billion, with an average loan amount of $ 239,152, all future approvals are now on hold.
US Secretary of the Treasury Steven T. Mnuchin and US Small Business Administration Administrator Jovita Carranza issued the following statement regarding the Paycheck Protection Program and the Economic Injury Disaster Loans:
“The SBA has processed loans for more than 14 years in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses get through this difficult time. The EIDL program is also providing much-needed relief to individuals and businesses.
By law, the SBA will not be able to issue new loan approvals once programs experience a lag in allocations.
We urge Congress to allocate additional funds for the Paycheck Protection Program, a fundamental and overwhelmingly bipartisan program, at which time, once again, we will be able to process loan applications, issue loan numbers and protect millions of paychecks. more.
The high demand we’ve seen underscores the need for hard-working Americans to have access to aid as soon as possible. We want everyone eligible Small business get involved and get the resources they need. “