Paycheck Protection Program Funds Depleted, Awaiting Congressional Replenishment
The Small Business Administration’s (SBA) Paycheck Protection Program (PPP) has run through its initial $349 billion in funding. A statement on its website reads, “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.”
While lawmakers are largely onboard with providing additional funds to the program, the Senate has been at an impasse over whether legislation refilling the PPP’s coffers would also include additional money as well. Senate Republicans have put forth a bill funding the PPP with an additional $250 billion, while the Senate Democrat bill adds $100 billion for hospitals and $150 billion for state and local governments and food assistance.
Senate Minority Leader Charles Schumer and Treasury Secretary Steven Mnuchin are negotiating, with reports coming out that they are “close to a deal.” Negotiations continued today but the Senate adjourned without putting the measure to a vote. The Senate returns to session on Monday.
Observers note that even when an agreement is reached, passage of the deal is not without obstacles. In the Senate, there have been complaints that small businesses unaffected by the pandemic are applying for PPP loans, while in the House concerns have been raised about the accountability of the voice vote procedure both houses of Congress are using to avoid legislators having to travel during this time.
Find more reports on the industry’s COVID-19 response, provisions of the CARES Act, links to related webinars and further information on PPAI’s coronavirus information page here.