PPP Runs Out of Money | $350 Billion Program Depleted in Days

Paycheck Protection Program's multi-billion dollar program received an overwhelming amount of applications, resulting in banks dealing with prospective funds that may or may not come at this time

Millions of businesses relied on the promise of the 'PPP', or Payroll Protection Program to cover payroll for up to 10 weeks for small businesses. Businesses who believed the message kept employees on payroll based on the governments messaging. Now, there's nothing. This is catastrophic for many millions of small businesses nationwide - and a serious financial blow to our shops here in South Pasadena.

Money allocated under the Small Business Administration’s Paycheck Protection Program pursuant to the $2.2 trillion, Coronavirus rescue package has already run out, it was learned today. The dry hole means funds not already doled out, even if already approved, won’t be funded.

The news spread quickly as banks contacted customers on whose behalf they were processing the applications, which are configured as forgivable loans if borrowers meet conditions such as withholding layoffs.

COVID-19 PPP emergency business paycheck relief program is an empty promise for many millions of businesses who chose to stay open and keep employees longer on payroll on faith that the program would be their. Now its not.

Customers unable to secure funds under the first round of the PPP may still be able to get loans if Congress approves a new round of appropriations. “We continue to process applications to be ready if more money becomes available,” Chase Business Bank told customers Friday. Although a new bill is under consideration, there is no guarantee the same terms will apply or of how much will be allocated.

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Some banks have told disappointed would be borrowers that their existing applications will still be processed and given priority if and when new funds are available.

Applications are advised to stay in close touch with banking reps. It is also advisable to take the opportunity to review both application and documentation materials, and the actual documents being prepared on your behalf by your bankers, as serious data processing errors have occurred.

PHOTO: Eric Fabbro | SouthPasadenan.com News | Mission St. in South Pasadena during lunch rush in the wake of the state and county’s new coronavirus safety measures