Payroll Protection Program runs out of cash, quits accepting applications
The Paycheck Protection Program (PPP) has run out of money. According to a U.S. Small Business Administration update, the PPP portal has stopped accepting applications for loans from most lenders.
Some of the money is still available through minority depository institutions (MDIs) and community development financial institutions. The SBA has also set aside money to fund previously submitted loan applications subject to hold codes.
The funding cutoff comes nearly four weeks before PPP was slated to end. Lawmakers in late March extended the program’s application deadline to May 31 and gave the SBA until June 30 to close pending PPP applications.
“After more than a year of operation and serving more than 8 million small businesses, funding for the bipartisan Paycheck Protection Program has been exhausted,” SBA spokesperson Carol Wilkerson said. “The SBA will continue funding outstanding approved PPP applications, but new qualifying applications will only be funded through community financial institutions, financial lenders who serve underserved communities. The SBA is committed to delivering economic aid through the many COVID relief programs it’s currently administering and beyond.”
It’s not the first time the PPP has run out of funds. PPP’s first iteration, launched in April 2020 with $350 billion in available funds, was drained in 13 days. A second infusion of cash kept the small-business relief program afloat through August.
The program relaunched in January, and much like last year’s version, it saw several midstream changes — many aimed at ensuring smaller lenders and businesses see the benefits of participating. For two weeks in late February and early March, the White House announced the SBA would only accept PPP applications from businesses with fewer than 20 employees.