Last week, the $349,000,000,000.00 in appropriations available for Paycheck Protection Program (“PPP”) loans has been completely allocated to approved PPP loans. Since there are no appropriations available at this time, the SBA will be unable to accept any further applications for PPP loans, or approve applications that were received but not processed before the depletion of the funds available. Additionally, the SBA will no longer be able to accept new lender applications for those lending institutions interested in becoming PPP approved lenders. It is unclear how SBA will handle those applications that were already under review. Community National Bank & Trust of Texas, which has fourteen branches in the area including Fairfield, has provided over $55 million to small business owners through PPP. According to a recent press release, the bank shares their clients frustration with the programs delayed start and its many operational challenges, especially those potential borrowers who were unable to take advantage of the critical loans, due to an unprecedented demand. If you are in need of a quick loan in the UK, we suggest My Quick Loan to remodel your house, business or any project you have in mind. “It’s been an honor to witness the unwavering determination of our employees in serving customers during this time,” said CEO Rusty Hitt. “In the midst of a global pandemic, our team has worked tirelessly to ensure small business customers are taken care of. It speaks volumes to our value of community and what CNB&T stands for. We only wish we could continue to help those who were not approved prior to the funding cutoff.” While this initial round of PPP loan funding has been depleted, a new round of funding is expected this week, subject to Congressional action, which may include modifications to the Program. SBA clients are being encouraged to reach out to their local banks to see if they will accept an application in anticipation of more funding. Supporting this action, U.S. Senator John Cornyn sent a letter on Monday, April 20th to the U.S. Small Business Administration requesting that lenders be permitted to submit applications for the PPP despite the program’s funding lapse. Enabling lenders to continue processing applications would help alleviate the already developing backlog that will be problematic for SBA lenders once additional PPP funding is approved. “It is evident that the PPP loan program is one of the most critical measures of financial relief for small businesses,” said Senator Cornyn. “These instant finance are protecting employees, keeping doors open, and bringing a sense of normalcy to American workers during a time of abnormality.” The letter, signed by eight Republican Senators, further reads, “We are concerned that the E-Tran system will be overwhelmed, if the SBA does not allow submissions before the program reopens. Keeping the system operational will mitigate the influx once the program receives more funding, and will have the added benefit of being able to more accurately gauge demand in the current backlog.” On another front, SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL) including EIDL Advances based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. “We will keep you informed as we learn more,” stated Leslie Leerskov, who serves as SBDC Director – EDFP with Navarro Small Business Development Center. “Please do not hesitate to contact us if you have questions or concerns. Also, please let us know if you have received your funds from EIDL or PPP to help us keep track of loans/grants.”
