by Tyler Durden
Sunday, May 09, 2021 - 03:20 PM
The Paycheck Protection Program has officially run out of money , hopefully putting an end to what was likely one of the most abused and poorly watched over government cash troughs ever created.
The program has run out of money before its planned May 31 end date, the Small Business Administration said, according to CNBC.
The program will only accept new applications from community financial institutions, which which typically serve minority borrowers , the report said. The SBA will fund outstanding approved applications (like Ross Gerber s?) but won t accept new applicants.
The announcement comes weeks after the PPP was extended through the end of May.
With Funds Nearly Exhausted, Paycheck Protection Program Will Stop Accepting Most New Applications gobankingrates.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gobankingrates.com Daily Mail and Mail on Sunday newspapers.
As NJ business relief nears $8B, federal grant money runs dry May 6, 2021
7:29 am
As New Jersey businesses reach a combined $7.9 billion in federal relief loans under the Paycheck Protection Program, the funds paying for the Trump-era program have officially run out.
Now, the program has an uncertain future, and businesses are instead turning their attention toward a duo of Biden-era COVID-relief programs: One for restaurants and another for theaters and other live performance venues.
The federal Small Business Administration said it will continue paying out existing PPP loans. But new applications will be funded via an $8 billion pot of money from Community Financial Institutions, which are geared toward minority borrowers.
If you own a business that’s been affected by the COVID-19 pandemic, you may have received some type of aid from the government – or maybe not. But in either case, some new opportunities for assistance may interest you.
President Biden signed legislation extending the Paycheck Protection Program application deadline from March 31 to May 31, 2021. So, if you haven’t received a PPP loan yet or even if you have, and you’re eligible for a “second draw” loan you’ve got another chance.
As you may know, a PPP loan may be fully forgiven, including interest, if the loan proceeds are used for eligible expenses such as payroll costs (including benefits), mortgage interest, rent, utilities, operations expenditures, property damage costs, supplier costs and work protection expenditures.
Other lenders also have backlogs awaiting SBA approval, and more applications they could have submitted.
Chris Hurn, the chief executive of Fountainhead Commercial Capital, a non-bank lender, said he has a backlog of more than 60,000 applications pending validation from the SBA, and nearly 35,000 more that could be submitted if the portal weren t closed. Everybody s going to be waiting now to see what the SBA does, if anything, said Hurn.
One year of PPP
The PPP was established in March 2020 as part of the CARES Act in response to the coronavirus pandemic. Since its inception, the program has given more than $780 billion in forgivable loans to more than 10.7 million borrowers, according to the latest available data.