Paycheck Protection Program (PPP) May Run Out of Money Before Deadline
Last month, the Paycheck Protection Program (PPP) was extended from its original deadline of March 31 to its current deadline of May 31. However, the Small Business Administration (SBA) is now warning small businesses that the program may run out of money before the deadline passes.
The program, which was re-opened in January with more than $284 billion to distribute, was given an additional $7.25 billion as a provision of the American Rescue Plan—bringing the total funding to about $292 billion. Now, with more than a month to go before the deadline, the program is estimated to have about $68 billion left. The SBA is estimating that this money will run out before May 31, likely sometime in the next couple of weeks.
Businesses that are planning on seeking a first or second-round PPP loan should not hesitate in completing their applications and submitting them to their local lender for approval.
To access more information about the Paycheck Protection Program, including instructions on how to apply for a small business loan, visit the Small Business Administration (SBA) website here.