The Small Business Administration (SBA) has exhausted the $349 billion of funding provided by the CARES Act for the Paycheck Protection Program (PPP). The SBA posted a notice stating “The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.”
The Treasury and SBA issued a joint press release urging Congress to appropriate additional funding. Negotiations with the House and Senate have been ongoing.
News reports indicate applications that have received an SBA authorization number will be funded.
Also today, the Federal Reserve Board (FRB) announced that the Paycheck Protection Program Lending Facility (PPPLF) is operational.
The PPPLF will extend credit to depository institutions that make loans under the SBA’s PPP, using such loans as collateral. The facility will be managed by the Federal Reserve Bank of Minneapolis.
Additional information, including the term sheet, letter of agreement, and frequently asked questions can be accessed here.