There is no more money in the Small Business Administration (SBA) rescue initiative. CNBC reported that the $ 349 billion intended to keep small businesses afloat as the COVID-19 virus continues to wreak havoc on the country’s economy has run out.
The SBA published the news on his website, noting that they are “unable to accept new applications for the Paycheck Protection Program based on available credits.” Likewise, we are unable to register new PPP lenders at this time. “
President Donald Trump tweeted Thursday April 16 accusing Democrats of blocking PPP funding:
Democrats are blocking additional funding for the popular paycheck protection program. They are killing small American businesses. Stop playing politics Dems! Support PPP infill NOW – funds run out!
– Donald J. Trump (@realDonaldTrump) April 16, 2020
Meanwhile, Democratic Senator Chuck Schumer tweeted about the need to provide funds to small businesses that need it.
Our Small Business Programs Need More Money Now
We all agree
But Democrats actually want to put it in the hands of everyone who needs it.
This is not what happens when websites go down, mom and pop stores and minority businesses are closed, big banks lend to preferred customers.
– Chuck Schumer (@SenSchumer) April 15, 2020
Last week, PYMNTS reported that the SBA was struggling to meet demand for the Small Business Paycheck Protection (P3) program that rolled out on April 3. At this point, 178,000 loans had been approved, for a total of $ 50 billion.
Democrats and Republicans disagree on how an additional $ 250 billion measure should be spent. Republicans want aid to go exclusively to struggling businesses, while Democrats say the money should be shared with states and hospitals.
The Wall Street Journal reported that a banking industry official said lawmakers may need to keep the money in circulation or some businesses will be left out. “We believe we will need more than $ 1 trillion to meet the demand of US small businesses,” Richard Hunt, general manager of the Consumer Bankers Association business group, told the news service.