The Paycheck Protection Program, which is designed to help small businesses weather economic impacts from the coronavirus, is expected to run out of money later today, according to a story in the Wall Street Journal.
As of Wednesday morning, the SBA has processed 1.3 million applications and totaling more than $289 billion in funding. However, sources quoted in the story said the funds were expected to be exhausted by the end of the day, and some banks have stopped taking applications while they wait to see if the government adds more funds to the program.
Meanwhile, Republicans and Democrats are still negotiating on adding another $250 billion to the program. Republicans want to pass a measure that focuses solely on replenishing the small business loan program while Democrats want to expand access to the loans and also add funding to help hospitals, state and local governments and food assistance programs.
We have talked to many, many companies and retailers in our industry who have filed applications but have not yet been funded.
Construction companies are so far the largest beneficiary of the program collecting about 14% of funds, followed by the professional, scientific and technical services category, according to data released by the SBA. The accommodation and food services category ranks fifth, receiving 9.2% of all funds; retail trade was sixth with 8.6% of funds approved.
The program is aimed at providing short-term relief to small businesses so they can sustain operations and keep their workers employed.
Businesses with 500 or fewer employees are eligible to apply for up to $10 million in funds, and some or all of the loan and the interest may be forgiven if the money is spent on payroll and other essential expenses.
