Funding Lapses for Paycheck Protection Negotiations Continue for More Funding

April 17, 2020

Yesterday, the Small Business Administration (SBA) announced that funds had been depleted for the Paycheck Protection Program (PPP). The SBA said on its website that the agency “is unable to accept new applications … based on available appropriations funding.” The SBA reported Thursday morning that more than 1,637,000 loan applications valued at “over $339 billion” had been approved.

Please note that the SBA’s Express Bridge Loan and Debt Relief programs are still accepting applications. This is a fluid situation and we will keep our readers apprised of new developments. 

News of the funding lapse was not unexpected. Republican and Democrat leaders have been at odds over a proposal to appropriate additional funding for sometime. Last week, the Administration asked Congress to pass $250 billion more for the program, but a Republican attempt to approve that increase failed in the Senate as Democrats demanded more money for hospitals, cities and states and food stamp recipients. Utah’s congressional delegation is actively involved in pushing for the additional funding, as negotiations between the parties continue. While Congress is likely to appropriate new funding, further delay is certain to put pressure on small businesses and efforts to keep employees on the job.

In a statement Wednesday, Treasury Secretary Steve Mnuchin and SBA Administrator Jovita Carranza said that a lack of action would disrupt the program intended to “protect millions more paychecks.

For any questions or requests for assistance, Utah businesses are encouraged to reach out to the rapid response team here: wtcutah.formstack.com/forms/rapid_response_team_intake