Small Business Admin Runs Out Of COVID Loan Money, Needs Congress To Act

The U.S. Small Business Administration is no longer able to accept new applications for the coronavirus emergency loan program after hitting its $349 billion limit Thursday, according to their website. The advance provides businesses with up to $10,000 that doesn’t need to be paid back and is provided for them to stay afloat in the coronavirus pandemic.

“BA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding,” the SBA notice stated.

The SBA reports that the number of applications received in the last 14 days is more than 14 years of loan applications. Their statement continued, “Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.”

On March 27, the CARES Act budgeted $376 billion to American businesses and workers. In a joint statement released Wednesday, Treasury Secretary Steve Mnuchin and SBA Administrator Jovita Carranza urged “Congress to appropriate additional funds for the Paycheck Protection Program—a critical and overwhelmingly bipartisan program—at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks.”

They added, “The high demand we have seen underscores the need for hardworking Americans to have access to relief as soon as possible. We want every eligible small business to participate and get the resources they need.”

U.S. lawmakers remain in a stalemate over appropriating additional funding. In an effort to bridge the partisan gap, Mnuchin is reportedly working with Democrats who voted against the GOP’s $250 billion bill in the Senate last week. The Senate, however, isn’t scheduled to be back in session until April 20, but may be forced to call an emergency session to provide needed funding.

In a letter sent to Republicans last week, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer asked for additional funding of hospitals, personal protective equipment (PPE), and the food stamps program to be included in the next bill.

House Minority Leader Kevin McCarthy, R-CA, said Thursday on Twitter that the failure to get additional funding “is on you, Chuck Schumer and Nancy.”

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