Yesterday, less than 2 weeks after launching recovery programs for small businesses, the Small Business Administration (SBA) has announced that the $349 Billion dollar relief fund has run dry.
The numbers are pretty staggering. The SBA says that is has processed more than 14 years worth of loans in 14 days and approximately 1.5 million businesses have been approved for $350,000 in forgivable PPP loans. View some stats on the PPP here.
So what if you’ve already applied and haven’t received funds yet? It doesn’t necessarily mean that you won’t receive funding at all.
If you have an E-Tran number than your lender has already sent your application into the Capital Access Financial System (CAFS) and it’s possible that your loan has been account for and being processed, you just haven’t received the funds yet.
If your lender hasn’t submitted your loan application to the SBA through the system, and you don’t have an E-Tran number, then it is unlikely that your application will be processed at this time. Here is what the SBA website states:
Lapse in Appropriations Notice: 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. EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
Don’t lose hope yet though. I suspect that there will get more funding in the next few weeks as the government has already mentioned that another $250 billion could be added to the CARES Act to help fund these programs.
If your bank is still taking applications, go ahead and apply in case more funds become available. You don’t want to lose your spot in the queue.