PPP Funds Exhausted

Trade associations have been told that a paycheck protection program of the federal Small Business Administration is now exhausted.

The agency also said the PPP application portal will stop accepting applications for loans from most lenders.

An SBA spokesman said the agency has reserved approximately $6 billion for previously submitted loan applications subject to hold codes that have yet to be resolved.

Also, there is approximately $8 billion remaining in congressionally-mandated funding for PPP loans made by designated “community financial institutions,” defined for bankers’ purposes as minority depository institutions and community development financial institutions.

SBA reminded trade associations that loan applications that have not yet received an SBA loan number have not been approved.

Banks with applicants in this situation may consider referring clients to MDI’s and CDFI’s, it was said.

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