The Paycheck Protection Program Has Reached Its Funding Cap. Don’t Panic. Prepare.

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Written by HORNE

Less than two weeks after the Small Business Administration (SBA) launched the Paycheck Protection Program (PPP), the funding has been exhausted. At the same time, the long-standing Economic Injury Disaster Loan (EIDL) SBA program has stopped taking applications for the EIDL program. Applications for both programs have far outpaced appropriations funding.

With the announcement from the SBA that the initial $349 billion in PPP funds have run out, many are undoubtedly concerned. For companies in the application processes, as well as those who had not yet begun, there is no need to panic.

We anticipate Congress will allocate another round of funds, possibly as early as next week. Once that happens, those who are prepared will have the advantage of moving forward quickly.

Businesses who missed the first round of funding should complete the following steps, so they are ready to act when new funds are released:

  1. If you were in the PPP application process, check with your bank to see if you’ve received an SBA loan approval number. Lenders are encouraging business owners whose applications were not accepted before the funding ran to contact their Congressperson or Senator to inform them that they were left out of the program.

    Also, stay in contact with your lending institution to make sure your application is complete and in the queue when new funds are available.
  2. If you were compiling your application, you have time to make sure your calculations are correct. With new guidance coming out late in the first application process, you now have the advantage of details to help guide your application. 
  3. If you are still considering whether to apply, we are happy to discuss your options and facilitate the application.

It is important to have a complete, accurate application ready for round 2 of funding. Use this time to your advantage by preparing.

Whether you received funds in round 1 or will seek funds in round 2 – proper planning on how to use the funds is key to receiving maximum forgiveness. HORNE can help guide you through the forgiveness process. Contact the HORNE team if you need assistance.

Stay tuned. We will continue to update you, as things will likely change quickly.