Breaking: If You Are Still Considering a Paycheck Protection Loan for Your Business, You’d Better Apply Quickly
On April 15, 2020, the U.S. Small Business Administration (SBA) made an important announcement for businesses seeking financial relief from the COVID-19 pandemic. And it’s not good news.
Once the processed loan volume reaches the $349 million allocated to the Paycheck Protection Program (PPP) by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, applications submitted to lenders but not yet submitted to the SBA will not be completed and lenders can no longer process applications with the SBA via the Capital Access Financial System (CAFS or E-Tran).
Because of this announcement, time is of the essence for businesses who have not yet applied for PPP loans. The program will shut down as early as the evening of April 15 or early on April 16, but no later than April 17, based on current volumes.
The SBA has indicated it cannot maintain a queue for PPP applications. The American Bankers Association, state banking groups, and others are advocating that Congress add new PPP funding to bolster the program, which has so far provided a lifeline to more than one million small businesses across the U.S.
If you are considering filing a PPP loan application, you must do so immediately – there is no guarantee of additional funding once the current funding allocation runs out. Should you have questions about completing the application or have other concerns or issues related to the coronavirus pandemic, please contact the Business Law Practice Group at Kreis Enderle today.