The PPP has run out of funds, the Small Business Administration said Wednesday, just under a month before it was scheduled to expire May 31. According to the SBA, the agency will continue funding currently outstanding approved applications.
The Small Business Administration should work to provide certainty for Paycheck Protection Program (PPP) loan forgiveness applications, as there is a large backlog of forgiveness applications that have not received a response from the SBA.
The Senate last week approved legislation extending the Paycheck Protection Program through May 31, a week after the House approved the same extension. The PPP was reauthorized at $284 billion earlier this year and was scheduled to expire March 31.
CUNA joined other financial services organizations Friday to call on member of Congress to urge the SBA to make every effort to clear the thousands of PPP loan holds and that any PPP loan application submitted by the March 31 deadline be eligible for SBA approval.
The Paycheck Protection Program should be extended through Dec. 31, CUNA and hundreds of national and state organizations wrote to Congressional leadership this week. The PPP was reauthorized at up to $284 billion and is scheduled to close March 31.
Additional PPP funding will likely be needed in 2021, CUNA wrote to the Senate Small Business Committee prior to its hearing on the nomination of Isabella Casillas Guzman to lead the SBA. Credit unions helped facilitated more than 200,000 PPP loans.
CUNA member credit unions continue to be challenged by a slow approval process with the PPP, CUNA wrote to the Small Business Administration Wednesday with several examples of errors that have occurred during application processes.
The SBA and Treasury will re-open the PPP loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications January 15 at 9 a.m. (ET). The portal will fully open January 19 to all participating PPP lenders.
The SBA announced the Paycheck Protection Program will re-open the week of Jan. 11 for new borrowers and certain existing PPP borrowers. Up to $284 billion is authorized to be used toward job retention and certain other expenses through March 31.
SBA and Treasury Department will present an overview of the new Paycheck Protection Program features associated with recently passed legislation. This webinar will take place on Monday, Jan. 11, at 2 p.m. (ET) and registration is now open.