Consultant’s Corner: Updates on the Paycheck Protection Program
Q: What is the latest news regarding the Paycheck Protection (loan) Program?
In previous weeks, we’ve discussed the Families First Coronavirus Response Act (FFCRA), the SBA Economic Injury Disaster Loan program, the Coronavirus Aid, Relief and Economic Security (CARES) Act and the resulting Paycheck Protection (loan) Program.
On April 15th, 2020, the SBA announced that funding for the $350B federal relief program known as the Paycheck Protection Program (PPP) has been entirely allocated. You can view the SBA press release below:
As mentioned in the press release, U.S. Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administration Administrator Jovita Carranza have urged Congress to appropriate additional funds for the PPP.
As of 5PM EST on Thursday, April 16th, 2020, Congress continues to debate the specifics surrounding additional funding for the PPP. With only the House of Representatives scheduled to be in session on Friday, April 17th, 2020, next week will be the earliest negotiation and voting will resume in regards to additional funding for the PPP.
We encourage you to monitor the congressional debate through various major news outlets.
If you have not yet applied for a PPP loan, you can continue to research SBA-approved lenders and inquire with them directly about their current application processing status. While many SBA lenders have ceased accepting new applications, some lenders, such as Wells Fargo, have released statements indicating that they will continue to accept new applications in preparation for additional funding being provided for the PPP.
Continuing to research and contact SBA approved lenders will provide small business owners and self-employed individuals the best opportunity to successfully submit a PPP loan application. The following SBA resource can be utilized to identify local lenders.
As to funds already allocated by the SBA through the PPP, the SBA released a report outlining approvals through April 13th, 2020. You can review the report by following the link provided below.