17 May SBA Stops Accepting PPP Loan Applications
In early May, the Small Business Administration (SBA) announced it has stopped taking new PPP loan applications from most lenders due to the general fund for PPP loans being out of money. The agency will continue to process outstanding loan applications as it has set aside $6 billion for applications still in the review process.
Going forward the SBA will only accept new PPP loan applications originated by participating community financial institutions (CFIs) until May 31, 2021 or until remaining funds of $8 billion set aside for this purpose are exhausted. CFIs are nonbank lenders that typically work with businesses/organizations in underserved communities.
There are still other relief programs available to organizations including some that also give grants. These include:
- Shuttered Venue Operators Grant Program – Re-opened in April, this program administered by the SBA’s Office of Disaster Assistance, has $16 billion in funding for venue operators who had to close during the pandemic.
- Economic Injury Disaster Loans – Also administered by the SBA’s Office of Disaster Assistance, these loans provide economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue.
- Employee Retention Tax Credit -Eligible employers can claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after December 31, 2020, through June 30, 2021.
- HEERF III – Provides support to institutions of higher education to support students and ensure learning continues during the pandemic.
This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.