PPP Funds Run Out: What That Means for You
The SBA announced today, April 16, 2020, that the initial $349 billion authorization for loans under the Paycheck Protection Program has been exhausted.
Update 4/22/2020: The Senate passed a bill on 4/21/2020 adding an additional $310 billion to the Paycheck Protection Program (PPP), $50 billion to the Economic Injury Disaster Loan (EIDL) program, and $10 billion for EIDL grants. Of the $310 billion allocated towards the program, $60 billion has been set aside for community lenders, including state and federal credit unions. The bill is expected to be voted on by the House on Thursday, 4/23/20. Funds are not available yet and SurePayroll will continue to monitor this situation closely. In the meantime, you can start preparing your loan application: if you’re a SurePayroll customer, you can access the payroll data necessary for your loan application with our ready-made report; if you have not connected with an SBA-approved lender, we’ve teamed up to help you with that. Our new PPP Loan Forgiveness Estimator will also help you estimate how much of any PPP loan you will take (or have already taken) might be forgiven.
With the limit reached, the SBA is unable to approve new loans under the Paycheck Protection Program. Similarly, they are unable to enroll new PPP lenders at this time. Congress is currently negotiating legislation that would provide additional funding for the program.
With many small businesses, independent contractors, and self-employed individuals still working on their loan applications or waiting on an update as to whether their loan is approved, this news is understandably stressful. We are continuously monitoring the situation and will have updates as soon as they are available.
Q: What can I do to be ready to file an application if funding is approved and are banks still accepting applications during this time?
A: Please check with individual lending institution on whether they are still accepting applications. SurePayroll can assist you with reporting for your loan application. Our website also contains additional information about the PPP program and other COVID-19 relief.
What You Can Do Now
If you are wondering what economic relief options are available as you wait on a PPP loan, we have a guide that provides details on the relief options available from COVID-19 related legislation.
If you already received PPP loan approval and are waiting on your funds to be disbursed, you may already be thinking about loan forgiveness. We’ve put together some tools to help you understand how to maximize your PPP loan forgiveness potential.
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This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.