Two of the four additional Small Business Administration funding programs created by the CARES Act have run out of funding.
In addition to traditional SBA funding programs, the four new options were temporary programs designed to address business needs through the COVID-19 outbreak.
According to its website, the Paycheck Protection Program has a “lapse in appropriations.”
“The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding,” the website says.
The $349 billion PPP program was designed as an incentive for small businesses to keep their workers on payroll, with loan forgiveness if at least 75% of the money was used for payroll and the rest on rent, mortgage interest, or utilities.
Applications opened on Friday, April 3, and the program was supposed to run through Tuesday, June 30.
The Economic Injury Disaster Loan program is also out of money.
“SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding,” the SBA website says. “Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.”
The loan program supported small businesses and private non-profits with fewer than 500 employees and included an option for a $10,000 advance.
The two remaining loan products – SBA Express Bridge Loans and SBA Debt Relief – are for businesses that already have an existing relationship with the SBA.
A CNN article outlines the path to more funding for the SBA programs. According to the article, negotiations will take place today, Thursday, April 16, on a package that would immediately increase the funding.
For more information, visit sba.gov.