SBA stops receiving COVID-19 payroll applications and other emergency loans
On Thursday morning, the Small Business Administration stopped receiving applications for two COVID-19 emergency loan programs offering a financial lifeline to employers, crossing over $ 345 billion in less than two weeks.
An additional $ 250 billion could be made available to replenish loan funds; the White House and Republican and Democratic leaders in Congress have yet to strike a deal.
For now, the window has closed on two programs employers have jumped on to keep their organizations viable during government-mandated shutdowns: the Paycheck Protection Program, designed to inject money into small businesses and non-profit organizations to cover salaries and other expenses and loans in the event of an economic disaster. .
A key feature of PPP loans is that they are, if used as intended, convertible into grants. The window to apply for PPP loans opened on April 3.
On Thursday morning, the SBA said in a statement that due to a credit disruption, the “SBA is unable to accept new applications at this time for the Paycheck Protection Program or the paycheck protection program. ‘Economic Disaster Lending Assistance (EIDL) -COVID-19 program (including EIDL Advances) based on available credit.
“Applicants to EIDL who have already applied will continue to be treated on a first come, first served basis. “
Wednesday evening, Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza, who is from Skokie, released a statement regarding both programs:
“The SBA processed over 14 years of loans in less than 14 days. The Paycheque Protection Program is saving millions of jobs and helping small businesses in America get through this tough time. The EIDL program also provides essential support to individuals and businesses.
“By law, the SBA will not be able to issue new loan approvals once the programs experience a credit disruption.
“We urge Congress to allocate additional funds to the Paycheck Protection Program – a critical and predominantly bipartisan program – at this point we can once again process loan applications, issue loan numbers and protect millions of dollars. additional paychecks.
“The high demand we have seen underscores the need for hard-working Americans to have access to relief as quickly as possible. We want all eligible small businesses to participate and get the resources they need.