Free Consultation: 858.450.1040 Payment | Client Login

MENUMENU
  • EDD
  • IRS
    • IRS Notices – What They Mean
  • About Us
    • MEET THE TEAM
    • PRACTICE AREAS
    • CONTACT US
  • TAX LAW & EDD RESOURCES
    • SMALL BUSINESS OWNERS TAX LAW GUIDE
    • EDD & IRS AUDITS
    • CRIMINAL TAX
    • SAN DIEGO TAX ATTORNEY
    • Orange County Tax Attorney Services
    • TAX BALANCE
    • INNOCENT SPOUSE RELIEF
    • OTHER TAX LAW MATTERS
    • SALES TAX AUDITS
    • UNFILED TAX RETURNS
    • OFFERS IN COMPROMISE
    • CALIFORNIA INCOME TAXES
    • INTERNATIONAL TAX
    • TAX COLLECTIONS
    • CORPORATE | BUSINESS TAX
    • PAYROLL TAX AUDITS
    • TAX LEIN
    • FAQs
  • SBA Loan Resources
    • PPP FORGIVENESS DENIAL APPEAL
    • SBA Criminal Defense
    • FAQs
  • RESOURCES
    • Blog
    • VIDEO LIBRARY
Home > Blog > SBA PPP Runs Out of Funding

SBA PPP Runs Out of Funding

April 16, 2020

$350Billion Dollars in Funding Depleted

The Paycheck Protection Program—part of the multi-trillion dollar CARES Federal Stimulus package meant to offset the massive economic slowdown associated with the COVID-19 pandemic—is running into challenges as it tries to actually deliver the promised funding.

"The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time," - Small Business Administration announced Thursday April 16th.

Banks are overwhelmed by applications. Wells Fargo met its $10 billion lending limit three days into the program, most banks, including Chase and Bank of America have restricted applications to existing customers and Citibank took an extra week to ready itself before allowing any applications at all. As of today, Capital One has still not accepted application sand the first round of $350 Billion dollars is already depleted. 

Many leaders are looking to other resources, such as the fintech sector.  Fintech firms such as Square and PayPal, could “substantially increase the ease & availability of #PPPloans for #smallbusiness.” per Sen. Marco Rubio. 

PayPal and Intuit have announced that they have been approved by the Small Business Administration to participate as some of the SBA PPP’s first nonbank lenders. PayPal has already begun disbursing loans to borrowers. PayPal recently told Fortune that “there is no cap on how much money it is willing to loan” to its 10 million merchants. 

In the last two weeks, online lending platform OnDeck and Square Capital have also been approved to provide PPP loans to small businesses. And Kabbage, Fundera, and Lendio are throwing their hats in the ring to provide funding. 

Everything is on hold at the moment, however, as the SBA has reached the limit of the allotted $350 Billion.  The Main Street Loan program has $2.3 Trillion available to larger businesses able to take on debt of $1M - $150M, perhaps some of those funds will be redirected to the SBA.  Congress is in session today to determine what money can be added to the SBA’s funding pool as we look out at least 4 weeks to a full reopening of the economy. The House is expected to be in on Friday, otherwise any movement on additional funds will have to wait until next week.

Filed Under: Blog, COVID-19, News, PPP Loans Tagged With: Business Owners, Coronavirus, COVID-19, Filing taxes, Small business, small business management

Archives

Search

Categories

Questions About
Tax Audit/Controversies?

A representative will be in contact within 1 business day
PRIVACY POLICY

Get Monthly Updates on Important Tax Law Matters



Milikowsky Tax Law is located at: 4250 Executive Square, Ste. 650, La Jolla, CA 92037
o. (858) 450-1040 | m. (858) 212-0542 |
Privacy Policy

DISCLAIMER:
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

Milikowsky Tax Law © All Rights Reserved. Clear1099.com | Cal1099.com | California1099.com © All Rights Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT