Although Congress had extended the second round of the Paycheck Protection Program (PPP) through May 31, the program has exhausted its funding. The Small Business Administration (SBA) alerted lenders on Tuesday that the PPP would run out of funds before the deadline. Some money remains available for lenders to finish processing pending applications, but new applications are not likely to be funded.
There is approximately $8 billion remaining in a set-aside fund for community financial institutions, earmarked for businesses run by women, minorities and other underserved communities. These smaller lenders will be allowed to process applications until that fund is also depleted.
The PPP has disbursed $780 billion to 10.7 million applicants since being created last spring in response to the economic upheaval caused by the global COVID-19 pandemic.
If you have a PPP loan application pending, please check with your lender for information about its status. For more information or for assistance in managing company finances in the current unsettled economy, please contact Gray, Gray & Gray at (781) 407-0300.