The Paycheck Protection Program, which was set up to offer loans to small businesses during the COVID-19 pandemic, has run out of money less than two weeks after the $349 billion program went into effect, reports Eater. Applications for the program are no longer being accepted, according to a message on the Small Business Administration’s website, citing a “lapse in appropriations.”
Congress is looking to add funds to the program, but hasn’t made any progress due to disagreements between Republicans and Democrats. Republicans are looking to give an extra $250 billion in funds to the program, while Democrats want half of it to go to community-based financial institutions serving women-, minority-, and family-owned businesses.
According to the SBA website, of the funds approved by April 13, over $115 billion were for loans over $1 million, with the average loan size of $240,000. Full Story
Related: Paycheck Protection Program to Help Small Businesses Acquire Capital; CARES Act May Offer Some Relief to Specialty Food Industry.
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