Is the Paycheck Protection Program Out of Money?


One of the biggest parts of the stimulus bill known as the Coronavirus, Aid, Relief, and Economic Security (CARES) Act has stopped in its tracks. The Paycheck Protection Program (PPP) was meant to help Small Businesses (business with less than 500 employees) not lay off their employees. This would be done through low interest loans made by the Small Business Administration (SBA). The applications would come through various lenders. This program started with $349 billion dollars. It sounded like a good idea. What happened?


The PPP will no longer be accepting applications. They claim to have already approved 1.6 million loan applications. How did we get here in 2 weeks? Not much is known considering there is still a great amount of confusion surrounding the program. Some who were approved early on are still waiting for their money. Banks are still holding on to thousands of applications, even as the program has closed its doors. Hotel chains were allowed to file for this program. To do so, they must have applied for each location individually to keep under the 500 employee limit. While this is a disappointing turn, the COVID-19 situation changes day-by-day. The Employee Retention Credit is another option for Small Businesses to examine.

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