The SBA program that is supposed to be a lifeline to small businesses in America has ran out of money, according to the the SBA’s website. This comes after millions of small businesses in America filed for benefits through the program.
The Small Business Administration’s rescue loan program has reached its $349 billion limit and is now out of money. Meanwhile, the nations top democratic and republican leaders contend over ways to restore the funds.
According to the SBA’s website, they are unable to accept new applicants for the Paycheck Protection Program at this time due to lack of funds.
The first-come first-serve Paycheck Protection Program was signed into effect in March, and as of this past Wednesday, it was clear that the funds were reaching their limit after approving over 1.3 million loans.
Lawmakers are hurriedly working out how to extend this program, as the initial plan was exhausted after only a few weeks. Though they seem close to making a decision, the speed at which the funding limit was met speaks to the severe impact this pandemic has had on small businesses across America. Coming up with a longer term solution to help these business owners will be no easy feat.