U.S. Small Business Loan Program Now out of Cash

U.S. Small Business Loan Program Now out of Cash

© Reuters. © Reuters.

By Kim Khan

Investing.com – The federal government’s program of loans for small businesses to retain workers is now oversubscribed and no loans will be available without action from Congress.

The Small Business Administration said Thursday the Paycheck Protection Program had reached its allotment of $349 billion.

More than 1.62 million loan applications were approved, according to the SBA.

“SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding,” it said. “EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.”

Both sides of Congress have been negotiating over a bill that would provide more funding for the program, which many saw running dry quickly once launched due to high demand.

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