The $349 billion Paycheck Protection Program fund is already exhausted, and Congress is at an impasse on adding more money, so businesses that have not had their loan applications approved are wondering what to do next.

Yesterday’s NJBIA webinar on navigating PPP’s application process began about an hour after the Small Business Administration (SBA) announced the program was out of money. Presenter Scott Borsack, a partner at the law firm Szaferman Lakind, said businesses should act with the anticipation that the program will receive additional funds and be mindful that the program is first come, first served.

“What individual borrowers should be doing now is making sure that they have all of their information submitted to their bank, and their bank is ready to make a loan to them once there is additional funding,” Scott said.

What’s not clear is if banks are going to continue to accept applications in anticipation of more funding to come. Most likely it will depend on the individual bank.

“I’ve been told by a couple of banks that they will continue to accept applications and consider them and make loans to their depositors in the order that the applications are received,” Borsack said. “So there is an advantage to getting to your bank and submitting an application now even if the bank does not have an allocation to loan out,” Scott said.

For more on applying for Paycheck Protection Program loan, visit NJBIA’s Coronavirus Resources page and click the Grants and Loans tab.

Meanwhile, The Hill magazine is reporting that Senate negotiators haven’t given up on reaching a deal to add funds to the program, even if no agreement is imminent. The stalemate seems to center around how broad another round of funding would be. The GOP leadership wants to just add funds for the PPP program while Democrats want additional funding for hospitals and other programs.

“Republicans are seeking a clean $250 billion in new money for the program, while Democrats want to reform the program and provide at least $250 billion for hospitals, state and local governments and the Supplemental Nutrition Assistance Program for low-income families,” writer Alexander Bolton explains.

 

 

 

11 responses to “With PPP Out of Money, What Should Businesses Do?”

  1. Zina says:

    we bank with Santander and they refuse to take applications

    • Steve says:

      I agree, Zina. Santander was recommended by our CPA firm to three business clients for their banking needs. These three companies have not been able to get their application in. All that we are getting from Santander is excuses via email!

    • Isg says:

      I had the same experience with Santander. Customer since 1995.

  2. Robert Hurd says:

    Why haven’t our congressmen put any pressure on their leadership to get this done?
    Why did we elect them? They seem to be the puppets for Nancy.
    Queen of haltered against the Trump administration. This should not be a political issue when we’re all in ER on respirators.

  3. gary says:

    Maybe Pelosi and Schumer should not get paychecks until this gets funded like all the small businesses that are failing waiting for them. Why are they playing politics instead of helping the people who have been paying their salaries.

    • Isg says:

      I had the same experience with Santander. Customer since 1995.
      Wouldn’t it make sense for SBA to work directly with biz owners since the ‘forgivable’ disaster loans won’t make $ for banks? Many banks didn’t take applications and others denied the most needy, smallest businesses.

  4. ART says:

    I can confirm despite numerous requests to Santander they never accepted any applications they were never ready. Disgraceful that we have to rely on a bank to be organized to do this.

  5. Mary Pratico says:

    I am so disappointed as I have applied for the loan on March 19th and to date I not heard a word, not even an email to say it was or was not approved. I operate a Travel Agency that is dead in the water right now and while I know it will rebound I could use the help right now. I don’t understand how big business can get all the $$$ while the “little guy” always gets left behind. I know of people that already got money and they only applied a week to 10 days ago.

    • rupert johnson says:

      Hello Mary,

      I don’t think you applied to the PPP program. that was only open on April 13th. I think you are talking about the EIDL from the SBA.

  6. Arturo D Monta says:

    I am very disappointed with Santander Bank, the only bank we use because we prudently inquired about the PPP program on day one and filled up the “expression of interest” as soon as they rolled it out but did not even get an application form from them. I kept following up the process with them and always told to wait for the application form to be available which did not happen. It’s time for us to look for another bank. Now, we can’t even apply from another bank bec we made a mistake of using them for all our banking needs.