The Paycheck Protection Program has run out of money, shutting out thousands of companies that were seeking aid during the coronavirus pandemic.
On Thursday morning, the SBA sent out a notice stating that is now “unable to accept new applications for the Paycheck Protection Program based on available appropriations funding.”
The SBA and Treasury Department have yet to release any formal statistics on total loan disbursements from banks to small business owners. The SBA did release data on Tuesday showing a breakdown of approved loans by state and by industry through April 13. The data showed an overall average loan size of just under $240,000.
As of Monday, April 13, more than 22,000 Iowa companies had been approved for loans for nearly $3.75 billion. The average approved loan for Iowa companies is approximately $168,000.
While the program quickly hits its $349 billion limit, Congress has yet to agree on new funding. The White House and Congressional leaders are continuing to negotiate the details of adding an additional $250 billion to the fund.
The PPP loans are intended to help small businesses retain staff during the severe economic disruption caused by the pandemic. Businesses that maintain their payroll are eligible for forgiveness of 100% of the loan, with the stipulation that 75% of the loan must be spent on payroll.
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