– SBA’s first-come, first-serve $349B Paycheck Protection Program now “unable to accept” new applications and “unable to enroll new PPP Lenders at this time”
– PPP was designed and promised to ease financial losses for country’s smallest businesses
The Small Business Administration’s $349B Paycheck Protection Program (PPP) was created, approved by Congress, and signed by the president in March. The focus of this relief plan was to ease the financial burden of small business owners inflicted by the coronavirus pandemic.
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Now, less than one month of its creation, the PPP is out of money. As of yesterday evening, Wednesday, April 15, more than 1.3M loans were approved at a value of approximately $315M.
Congressional leaders in both the House of Representatives and Senate are currently convening to seek and negotiate new funding to add to this program. We’re obviously watching the extent and severity of state-imposed business closures play out across the country. March’s historic drop in retail sales, now +22M job losses that have wiped out job gains accrued over the last 11 years in just four weeks and weaker manufacturing data point to a country being deep in recession.
Ron Temple, head of US equity at Lazard Asset Management, said, “It’s critical for both (political) parties to recognize the unprecedented stress on small business and their employees from this (COVID) crisis, and pass incremental funding as an urgent priority.”
Temple also pointed out that small businesses in America employ 47% of our workforce and that in high-cost cities, the median small business has “only enough cash to cover 2-3 weeks of expenses.”
Thanks to CNBC.