SBA Exhausts Funds for Loan Programs
April 17, 2020
The Small Business Administration ran out of its $350 billion funding on April 16 for its Paycheck Protection Program and Economic Injury Disaster Loan Program, both of which were created under the CARES Act to help small businesses affected by the coronavirus pandemic.
Politico reports Congress is "deadlocked" about how to allocate more funds for the loan program. The GOP proposes adding another $250 billion, which Democrats oppose unless hospitals and local governments receive equal compensation. The stalemate has lasted for about two weeks, with Democrats blocking a small business bill last week and Senate Majority Leader Mitch McConnell (R-Ky.) blocking a bill that married the PPP with $250 billion for hospitals and governments, reports Politico.
Industry groups are reacting, too. NAHB, for example, sent a letter to Republican and Democratic leaders in Congress "urging lawmakers to act immediately to ensure sufficient resources and funding are available in the SBA's PPL and EIDL program to meet the considerable needs of the nation's small businesses, including those in the residential construction sector. Additionally, as you consider fixes to the PPP, both now and in the future, we ask that you make improvements which will help all small businesses and nonprofits access this critically important program. As it currently stands, the PPP is failing to serve the needs of a sizable number of small businesses and nonprofit organizations in the residential construction and remodeling sectors."