On March 27, 2020, the federal government set aside $2 trillion in stimulus money to help ease the economic impact of COVID-19 with the CARES Act.
One of the most significant portions of that bill was the Paycheck Protection Program (PPP), which allocated $349 billion in forgivable loans to help small businesses maintain payroll, employee salaries, and certain other expenses like rent, utilities, and mortgage payments.
The Paycheck Protection Program is out of moneyHowever, after less than three weeks, the Small Business Association (SBA) is no longer accepting PPP loan applicants.
Why? Because the Paycheck Protection Program is entirely out of money. A program with $349 billion has been sucked dry in just 20 days by the 1 million loans approved by the SBA.
The other programs in the CARES Act remain online for the time being.
Efforts may be made to add more funding to the PPP, but that would require more bipartisan support in the senate – something that hasn't happened yet.
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