The $349 Billion Funding Program for Small Business Loans is Out Of Money

Written by- @pistolwhippedya

Small businesses across America continue to suffer as a result of Covid-19. To help assist and lessen the blow, the government agreed to release $349 billion in emergency relief to the Small Business Administration lending program.

On April 16, the Washington Post reported that the SBA has since approved over 1,367,000 loan applications within the past two weeks, causing the Paycheck Protection Program funds to max out. The high demand expresses the urgent need for Congress to agree on replenishing the program’s funding to continue helping small businesses and American employment.

Democrats and Republicans remain divided by their conflicting interest on what is best for America during this pandemic. The PPP was based on “first-come, first-serve.” Mehrsa Baradaran, a bank specialist professor at the University of California, said, “Any time you create a big program and give banks the ability to choose which customers to prioritize, you’re going to have disparities. Banks are incentivized to choose the customers that make them the most money.” The second go-around, Democrats plan to focus on protecting minority, women-owned businesses, and other vulnerable borrowers.

The Senate continued to negotiate at Thursday’s pro forma session with hopes of a breakthrough.

As of now, the administration’s website, SBA.gov, states, “it’s unable to accept new applications … based on available appropriations funding.” If you are seeking assistance, you may find luck through local and state grants, as well as your local community banks.