$350B in COVID-19 Relief Funds for Small Business Depleted
Saturday, April 18, 2020
Funding for the Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans have been exhausted. While Congress is working on a second round of small-business funding, the SBA is not accepting new EIDL applications, and banks are not accepting new PPP applications. If you have an EIDL application in the SBA queue already, it will be reviewed. If you have a PPP application pending with a bank, check with your bank regarding how they are managing their queue.
The Coronavirus Aid, Relief, and Economic Security Act, signed into law last month, rolled out the SBA’s Paycheck PPP and EIDL funding—some $376 billion in all—early April to provide support through the COVID-19 outbreak. By April 15, funding was exhausted.
EIDL provides as much as a $10,000 advance to make up for losses in revenue due to COVID-19.
California, as of April 13, had 54,922 approved PPP loans totaling $20.85 billion, according to the SBA.
Nationally, the construction industry has so far received the highest percentage from the PPP program, accounting for nearly 14% of the total. Accommodation and food services was the fifth-largest group, accounting for 9.2%, or $22.7 billion, of the loans. Retail drew 8.6%, or $21.2 billion, in approved loans through the program.
Source: Orange County Business Journal