$350B Small Business Relief Fund Has Run Out of Money
The small business rescue fund that was set up by Congress has exhausted its $350 billion funding capacity. Without additional funding, banks and the Small Business Administration are unable to approve anymore loans. The “Paycheck Protection Program” was designed to help small business keep workers on payroll during the coronavirus pandemic. U.S. lawmakers are in talks to add more funds but have remained in a stalemate over how to allocate more money.
“The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time,” the SBA said in a statement Thursday morning on its website.
PPP was part of the $2.2 trillion economic relief bill passed last month. Banks were immediately overloaded with requests as soon as the program launched.