WASHINGTON — A $350 billion small-business relief program designed to forestall layoffs through the coronavirus disaster has run out of money and is now not taking functions, the Small Enterprise Administration stated Thursday.
The Paycheck Safety Program, half of a $2 trillion emergency stimulus bundle handed by Congress final month, was overwhelmed with functions from companies attempting to remain afloat and pay their employees through the financial disaster.
“The SBA is presently unable to simply accept new functions for the Paycheck Safety Program based mostly on out there appropriations funding,” a spokesperson stated Thursday morning.
The SBA tore via the money in two weeks and enterprise house owners now face an prolonged interval of uncertainty after Senate Democrats blocked laws so as to add an extra $250 billion to the program.
There have been greater than 1,637,000 functions totaling greater than $339 billion, a supply acquainted instructed The Publish.
The small-business program offers corporations with as much as 500 workers, and in exceptions extra, loans to cowl payroll and overhead. The loans will probably be forgiven in the event that they don’t lay off employees.
Enterprise house owners at the moment are left in limbo, with the Home adjourned till Could, and any measures to extend the relief program anticipated to be delayed till then.
The administration is used to processing $25 billion a yr — with the SBA processing greater than 14 years’ price of loans in lower than 14 days.