Small Business Administration Stops Accepting New PPP Applications From Most Lenders
The U.S. Small Business Administration (SBA) has stopped accepting new Paycheck Protection Program (PPP) applications from most lenders due to the PPP general fund running out of money.
The only remaining funds available for new applications are the $8 billion set aside for community financial institutions (CFIs), which typically work with businesses in underserved communities. The SBA also has set aside $6 billion for applications still in review or needing more information due to error codes.
The PPP Extension Act of 2021, P.L. 117-6, did not include any additional funding for the current round of the PPP, which Congress provided with more than $290 billion. The SBA reported this week that it has approved more than 5.6 million PPP loans totaling more than $258 billion from the program’s reopening on Jan. 11 through May 2. First-draw loans totaled $57.3 billion, and second-draw loans totaled nearly $201 billion. The application period was set to close May 31.
TSCPA will continue to provide updates to this story.