This is how quickly the nearly $ 350 billion allocated for repayable loans to small businesses under the Paycheck Protection Program has been depleted.
Participating lenders had predicted the rapid depletion of funds as they already had tens of thousands of small businesses waiting to apply once the first-come, first-served program launched on April 3.
And lenders and small business advocates say it’s again not enough. About $ 1 trillion all-inclusive could be what the loan program needs to meet the outsized needs in the aftermath of the coronavirus crisis, said Richard Hunt, president and CEO of the Consumer Bankers Association, during of a media call Wednesday.
The SBA can no longer accept applications at this time
Participating lenders still have a long line of applications submitted by small businesses that have yet to be approved. “We have AT LEAST ONE MILLION small businesses that will not receive loans because the fund is depleted,” Hunt tweeted Thursday.
These companies should check with their lenders to see if they will at least continue to process claims as much as possible, even if they cannot. be funded now.
For example, Wells Fargo said Thursday, “We will continue to prepare applications in our existing pipeline of small and medium-sized businesses and submit them to the SBA when funds become available. “
Remember to apply anyway
As for small businesses that haven’t applied yet, John Arensmeyer, CEO of Small Business Majority, advises them to do so anyway on the assumption that more money will be added to the PPP loan fund.
Arensmeyer also recommends that small business owners call their congressional representatives and senators to urge them to quickly add more money to the program.
Find free resources and find other help options
Businesses could also continue to seek private aid resources in their communities and explore business aid programs provided by their state.