SBA Announces PPP Funds Exhausted
On Tuesday, May 4th, the Small Business Administration (“SBA”) informed trade associations, that PPP funding has been exhausted. The Paycheck Protection Program (“PPP”) application portal will stop accepting applications for loans from most lenders.
Approximately $6 billion in funding has been reserved for previously submitted loan applications subject to hold codes that have yet to be resolved. Additionally, approximately $8 billion remain available through a set-aside for PPP loans made by designated “community financial institutions,” defined for bankers’ purposes as minority depository institutions ("MDIs") and community development financial institutions ("CDFIs").
The SBA reminded trade associations that loan applications that have not yet received an SBA loan number have not been approved, and noted that banks with applicants in this situation may consider referring clients to MDIs and CDFIs.