SBA's $349B Paycheck Protection Program officially runs out of money

By Andy Medici Originally posted in the Silicon Valley Business Journal

The Small Business Administration’s $349 billion Paycheck Protection Program has officially run out of money.

The notice, posted on the SBA’s website, states the “SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time." The loan program, which offers forgivable loans to small businesses as long as most of the money goes to payroll costs, was first authorized as part of the $2.2 trillion CARES Act passed by Congress and signed into law by President Trump March 27.

Politicians, experts and bankers had been warning the program would run out by the end of this week or sooner without additional appropriated funding.

But Congress has been locked in a stalemate over a possible $250 billion extension, with congressional Democrats pushing for additional funding for hospitals and state and local governments.

The SBA also said on its website that it had run out of funding for its Economic Injury Disaster Loan program, stating the "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. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis."