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PPP Funding Runs Out; IBA Asks Congress to Authori

Media Center:PPP Funding Runs Out; IBA Asks Congress to Authorize More

Last Updated: 4/17/2020 10:31 AM

PPP Funding Runs Out; IBA Asks Congress to Authorize More

The U.S. Small Business Administration announced today that the $349 billion authorized for the Paycheck Protection Program has been exhausted, and it will stop accepting PPP loan applications. Loan applications received by banks but not yet submitted to the SBA will not be able to be completed, and the agency will not maintain a queue for PPP applications once additional funds are authorized. Any loan applications that have received an SBA authorization number will receive an SBA guaranty.

The IBA, along with all 50 other state bankers associations this week wrote to House and Senate leaders urging them to quickly increase funding for the Paycheck Protection Program. “In just under two weeks, the PPP has provided an economic lifeline to over one million small businesses across the country, and has allowed these small businesses to remain viable — and maintain their workforces — during the COVID-19 pandemic,” the groups wrote. “We urge quick congressional action so banks can continue to distribute these desperately needed funds to small businesses, which form the economic core of our communities.” Read the letter.

An article in The Wall Street Journal showed that a greater proportion of businesses in the Midwest have received SBA loans, although states with larger populations are receiving more money overall. The article showed that in Iowa, between 250 and 300 PPP loans were approved per 1,000 businesses with fewer than 500 workers. Nebraska had the highest total with 339 loans per 1,000 businesses. Subscribers to The Wall Street Journal can read the article here.

The IBA is hopeful an additional appropriation is imminent, but encourages all members to let lawmakers know how critical the need is. Members of Congress can be reached at 202-224-3121. Members can also submit a letter to Congress through the IBA’s Legislative Action Center.

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