The Paycheck Protection Program is cash strapped and closed to most new applications. – fr

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The Paycheck Protection Program is cash strapped and closed to most new applications. – fr


Some of the money – around $ 8 billion – is still available through a reserve for community financial institutions, which typically focus on lending to businesses run by women, minorities and other underserved communities. These lenders will be allowed to process claims until that money runs out, according to the trade group’s alert.

Representatives of the Small Business Administration did not immediately respond to a request for comment.

Some money also remains available for lenders to finish processing pending claims, according to a lender who was in conversation with SBA officials on Tuesday.

Since its inception last year, the Paycheck Protection Program has disbursed $ 780 billion in forgivable loans to fund 10.7 million applications, according to the latest government data. Congress renewed the program in the December relief bill, expanding the pool of eligible applicants and allowing the most affected businesses to return for a second loan.

Lawmakers in March extended the program’s deadline to May, but showed little enthusiasm to add much more money to its coffers. With vaccination rates increasing and pandemic restrictions easing, Congress’ focus on large-scale relief efforts for small businesses has waned.

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