COVID-19

Small Business Relief Funding Runs Dry... Will More Come Soon?

by
Sonu Shukla
on
4/15/2020
Small Business Relief Funding Runs Dry... Will More Come Soon?

The $349 billion appropriated by Congress to fund small business relief in the wake of COVID-19 has run out, according to a Thursday morning statement from the SBA:

“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.”

In the last 14 days alone, the Small Business Administration (SBA) has processed more than 14 years' worth of loans. As of Wednesday evening, April 15th, more than 1.4 million loans totaling more than $315 billion had been approved, according to the SBA. 

Both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Program (EIDL) program have been in high demand as businesses across the country struggle to survive amidst widespread closures and stay-at-home orders.

In a statement released on April 15th, U.S. Treasury Secretary Steven T. Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza said the following:

“By law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations. 

“We urge 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 process loan applications, issue loan numbers, and protect millions more paychecks.

“The high demand we have seen underscores the need for hardworking Americans to have access to relief as soon as possible. We want every eligible small business to participate and get the resources they need.”

The introduction of the small business lending program had a rocky start on April 3rd, with businesses swarming banks to apply for a piece of the aid. As The New York Times described it:

“Business owners found that applying for the money was harder than they had anticipated. Lenders had received guidance from the Treasury Department only the night before, just hours before they were to start making loans. On top of that, banks imposed their own rules on which businesses could and couldn't borrow. And many lenders, including JPMorgan Chase, the nation's largest, didn't have their websites ready for borrowers until later Friday.”

With a chaotic rollout and countless businesses left unable to apply for aid (or still waiting on the cash to arrive), the depletion of funding will no doubt leave many SMB owners confused about what to do next.

for help with finding financial relief.

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Sonu Shukla

Sonu Shukla

Sonu Shukla is a CPA, accountant, and tax preparer based in Orlando, FL. Sonu Shukla can assist you with your tax preparation and planning needs. Sonu is more than just another accountant in Orlando, Florida; he is a small business owner himself. It is a position in life that grants him the perspective and insight to emphasize with his clients, bringing them the best service possible. A Certified Public Accountant and a Certified Financial Planner, Sonu possesses the skills, education and experience to demonstrate unerring business acumen and passionately planned financial strategies. Being proactive is key for Sonu, tailoring highly efficient tax plans for his small business clients, all in a one on one environment where he and the client can bounce ideas around until every detail is worked out.

SONU SHUKLA, CPA, P.A.
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Florida

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