As of May 4, the Paycheck Protection Program (PPP), a critical lifeline that has helped businesses stay afloat during the pandemic, has stopped accepting most new applications.
Originally set to expire on March 31, Congress and the Biden Administration extended the PPP to May 31, with a boost of $292 billion in funding. However, four weeks before its scheduled end, funding for the PPP had been exhausted. Responsible for 10.7 million loans to businesses totaling $780 billion, the PPP has been the federal government’s signature aid program to assist businesses during the pandemic.
With vaccination rates increasing and COVID-19 restrictions easing, it is unclear if there is Congressional support for additional funds to be allocated to the PPP. While Congress decides on next steps for the program, the Small Business Administration (SBA) will continue to fund outstanding approved PPP applications from other lenders and will only accept new applications from community financial institutions, as about $8 billion in funding was set aside for such businesses.
Please visit the SBA website for updates to the program. NKBA will also monitor this situation and report to its members if more funding becomes available.
