Update: CNN reports on Tuesday that a $450 billion relief package, which would include $310 billion for the Small Business Administration's Paycheck Protection Program and $60 billion for the Economic Injury Disaster Loan, could pass in the Senate on Tuesday. The House is expected to vote on the bill later this week, according to the news source. A story from Friday on the Small Business Administration programs running out of money follows below.
WASHINGTON, D.C. — Two loan programs that were created as part of the federal stimulus plan to help small businesses that have been hit hard by the COVID-19 pandemic have run out of funds.
The U.S. Small Business Administration (SBA), which is heading up the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs, posted on its website on Thursday that the program cannot accept new applications for them at this time based on available funding.
“SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.” The notice reads. “EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.”
The SBA shares information on other business relief options here.
The PPP is focused on helping businesses with 500 or fewer employees keep workers on their payroll by offering a 1% interest rate on loans, and not requiring the interest to be repaid for the first six months. The EIDL is designed to provide relief to small businesses suffering a temporary financial loss due to the pandemic with an advance of up to $10,000.
According to CBS News, the SBA reported approving more than 1.6 million PPP loan applications totaling more than $339 billion from more than 4,900 lending institutions. Although that money has been approved, most borrowers are still waiting for the loans to be funded, and for money to post in their accounts, the news source reports.