Tapped out | Small Business Association paycheck protection program runs dry
The U.S. Small Business Association’s paycheck protection loan program has seemingly run out of money.
The SBA’s website posted this message Thursday morning.
It's official SBA is out of money for PPP. https://t.co/pB4MIajfM7 pic.twitter.com/Wgd2grXrNm
— Lauren Fox (@FoxReports) April 16, 2020
On Monday, the SBA said Monday it reached the $349 billion lending limit for the program.
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Thousands of small business owners whose loans have not yet been processed must now wait for Congress to approve a Trump administration request for another $250 billion for the program.
Republicans, including President Donald Trump, immediately launched into attacks on Democrats for the conundrum.
Democrats are blocking additional funding for the popular Paycheck Protection Program. They are killing American small businesses. Stop playing politics Dems! Support Refilling PPP NOW – it is out of funds!
— Donald J. Trump (@realDonaldTrump) April 16, 2020
Lawmakers have been haggling over whether to extend the program as it stands now, or whether to add provisions that among other things would help minority businesses.
Thanks to Democrats, this is now the message small business owners will see when they try to apply for help through the Paycheck Protection Program. https://t.co/3ViZ7bfM87 pic.twitter.com/EMjoTrAiI5
— Kevin McCarthy (@GOPLeader) April 16, 2020
It’s unclear when they might reach an agreement that would allow loan approvals to continue, according to The Associated Press.
McCarthy on GOP pushing $251 billion for small business. "All it simply takes is the Democrats to say yes, I don’t know what more it takes. There are 5 million reasons today. 22 million this month. This is not a time to play politics."
— Chad Pergram (@ChadPergram) April 16, 2020
The $ 349bn SBA fund has a dry run per family.
— (@arappeport)Apr 16 2020
On Wednesday, Treasury Secretary Steven Mnuchin and SBA head Jovita Carranza urged Congress to approve more funds.
WH and GOP Congressional Leaders blaming Democrats for blocking additional funding for PPP small business loans to keep employees paid. No word yet on whether @senatemajldr will try again for Unanimous Consent approval of more funding at 3pm pro-forma session. https://t.co/ZQuuWaH06z
— Mark Knoller (@markknoller) April 16, 2020
Meanwhile, thousands of businesses are still applying, hoping to get loans when Congress approves an extension of the program.
