Paycheck Protection Program Has Bumpy Start

April 10, 2020

The Paycheck Protection Program (PPP) went live April 3, but the process hasn’t gone as smoothly as hoped. The program, recently enacted as part of the Coronavirus, Aid, Relief, and Economic Security Act (CARES), provides $349 billion in funding for small businesses hit hard by COVID-19. Lenders in Utah and across the nation have been flooded with loan applications. However, the quick launch of the program created confusion for both borrowers and lenders, leading to delays and a rocky start. The Small Business Administration (SBA) was so overwhelmed with applications the first day that it’s own system crashed.

Utah’s banks, credit unions, and other lending channels, have been working hard to iron out the wrinkles and get PPP loans out the door ASAP. Local SBA officials urge patience and perseverance as any program of this enormous size is certain to have glitches. Businesses are encouraged to keep applying and to explore all SBA relief options, in addition to PPP. Utah businesses should visit GOED’s site for more information.

Senator Mitt Romney tweeted that as of Tuesday, 3,489 Utah employers had received a total of $718,878 through the PPP. Nationally, the program has funded about $400,000 loan applications amounting to over $100 billion. Loan demand is expected to exceed the $349 billion already approved, prompting President Trump and Senate Republicans to propose passage of an additional $250 billion. Senate Majority Leader had hoped to move on a funding measure as early as today, but House and Senate Democratic leaders pushed back, seeking to add other provisions.