SBA Has Stopped Accepting New PPP Applications

The Small Business Administration (SBA) has run out of funds and has stopped accepting new applications for Paycheck Protection Program (PPP) loans from most lenders.

There is approximately $8 billion remaining designated for PPP loans made by community financial institutions. The SBA has also reserved approximately $6 billion in funding for previously submitted loan applications. The program has ended well before its statutory deadline.

The Coronavirus Aid, Relief & Economic Security (CARES) Act established the PPP loan program in March 2020 under the SBA’s Section 7(a) Loan Program to provide forgivable loans to small businesses adversely impacted by the COVID-19 pandemic. In December 2020, the Consolidated Appropriations Act in December provided the latest round of funding with an additional $284 billion and funding for “second draw” PPP loans for smaller businesses.

In March 2021, the American Rescue Plan Act of 2021 (ARP) provided an additional $7.25 billion in funding for the PPP program. Also in March, the PPP Extension Act of 2021 extended the deadline for applications from March 31 to May 31, 2021 and gave the SBA until June 30 to process new applications submitted prior to June 1, 2021.

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