This morning, the Small Business Administration (SBA) issued a Lapse in Appropriations Notice, in which it announced that it would not accept additional applications for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) because all available funds have been exhausted. It has been reported that, in total, SBA approved 1,661,397 loans from 4,975 lenders.

Although Treasury Secretary Steven Mnuchin previously asked Congress to appropriate an additional $250 million to the PPP, Republicans and Democrats have yet to reach an agreement on further legislation. While Republicans are pushing a standalone measure to replenish the PPP, Democrats want additional funding to be a part of a larger measure that also appropriates money for hospitals, states and nutrition assistance program.

A deal to infuse funds into the PPP funding won’t be reached in the immediate future, as the Senate adjourned for the week after a brief “pro forma” session earlier today. Another session is scheduled for Monday.

In the meantime, small businesses that wish to take advantage of the PPP should complete their applications and gather all necessary supporting documentation now. Since additional funding for the PPP seems to be a matter of “when” rather than “if,” it is critically important that small businesses be ready to get in line at the first opportunity.

If you have any questions, please contact me at (516) 393-8292 or jbaquet@jaspanllp.com