The U.S. Small Business Administration (SBA) has stopped accepting new Paycheck Protection Program (PPP) applications from most lenders almost a full month before the $292 billion program’s application deadline.
The SBA informed lenders Tuesday afternoon that the PPP general fund was out of money and that the only remaining funds available for new applications are $8 billion set aside for community financial institutions (CFIs), which typically work with businesses in underserved communities. The agency also has set aside $6 billion for PPP applications still in review status or needing more information due to error codes.
Congress in late March extended the PPP application deadline two months to May 31, in part to give the SBA and lenders time to resolve error codes that were holding up nearly 200,000 applications in the SBA’s PPP platform. The unresolved error codes were related to validation checks instituted by the SBA to help prevent fraudulent applications from being funded.
While the SBA has stopped accepting new PPP customers, there are still many options available for small business. Premier Business Lending can help to secure funding for today’s business owner.
Why a Small Business Loan Can Be a Smart Option?
There’s more to a small business loan than meets the eye. More than a line on your credit report, it’s also a smart investment in your business’ future. The best business loans fuel growth for your business without any hassle, so you have financial flexibility for your daily operations. A loan helps you cover expenses that not only keep your business running but can help you grow and expand. Whether you need to hire more employees or a short-term cash infusion to cover taxes, Premier Business Lending can help you determine the right financing solution for your small business.