The Paycheck Protection Program is winding down with the program being closed to all new applications.
The U.S. Small Business Administration announced that the program would be closed to all new loan applications on Friday, May 28 instead of its scheduled closure of Monday, May 31.
According to an SBA release, the program, which was established by the 2020 CARES Act, has provided more than $798 billion to small businesses and nonprofits in the United States during the COVID-19 pandemic. The program was established to provide loans for small businesses with the purpose of keeping workers on payroll.
“The Paycheck Protection Program provided over 8.5 million small businesses and nonprofits the lifeline they needed to survive during a once-in-generation economic crisis. I’ve heard story after story from small business owners across the country about how PPP funds helped them keep the lights on, pay their employees — and gave them hope,” SBA Administrator Isabella Casillas Guzman said in a statement. “At the same time, millions of underserved businesses – particularly our smallest businesses and those owned by women and people of color – were left out of early rounds of relief. I’m proud of the work we did to begin to rectify these inequities — in 2021, 96% of PPP loans went to small businesses with fewer than 20 employees. Moving forward, we will continue to prioritize equity in all SBA’s programs and services.”
In early May, the SBA announced that the program’s funding had largely run dry. At that time, the agency announced that it would continue accepting applications from community financial institutions.
The Wall Street Journal reported that the SBA had received 125,000loan applications in the previous 24 hours on Friday, May 28.