Paycheck Protection Program funding depleted; businesses await next steps from Congress
As expected, the $349 billion in funding allotted for the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) has run dry – just short of two weeks after its much-anticipated April 3 launch. The program is no longer accepting new applications or enrolling new lenders.
On April 16, the SBA reported that it had processed more than 1.6 million PPP loan applications exceeding $339 billion. Most approved borrowers, however, are still waiting to receive their loans. Last week, Treasury Secretary Steve Mnuchin asked for an additional $250 billion for the PPP. However, Congress is currently at an impasse, as Democrats want $250 billion on top of this amount for hospitals, state and local governments, and food stamp recipients.
According to Bob Moss, CohnReznick’s National Director of Governmental Affairs, Senate Majority Leader Mitch McConnell has recently changed his position and may be willing to accept up to $600 billion in new funding for the two SBA supplemental programs – PPP and the Economic Injury Disaster Loan (EIDL) program. It is unknown at this point if Senate Democrats will accept this proposal under a unanimous consent request.
Moss assumes the funding battle will endure into next week in the Senate and, if there is no agreement to pass under unanimous consent, both chambers of Congress will need to return to Washington prior to their scheduled return on May 4.
CohnReznick will continue to stay on top of this issue and provide new information as it is received.
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