There’s no more money in the Small Business Administration’s (SBA) bailout initiative. CNBC has reported that the $349 billion intended to keep small businesses afloat as the COVID-19 virus continues to wreak havoc on the nation's economy has run out.
The SBA posted the news on its website, noting they are “unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.”
President Donald Trump tweeted on Thursday (April 16) accusing Democrats of blocking funding for the PPP:
Democrats are blocking additional funding for the popular Paycheck Protection Program. They are killing American small businesses. Stop playing politics Dems! Support Refilling PPP NOW – it is out of funds!
— Donald J. Trump (@realDonaldTrump) April 16, 2020
Meanwhile, Democractic Senator Chuck Schumer tweeted about the need to get funds to the small businesses that need them.
Our small biz programs need more money now
We all agree
But Dems actually want to get it into the hands of all who need it
That's not what's happening when websites are crashing, mom & pop shops and minority businesses are shut out, bigger banks are loaning to fav customers
— Chuck Schumer (@SenSchumer) April 15, 2020
Last week, PYMNTS reported that the SBA was struggling to keep up with the demand for the Paycheck Protection Program (PPP) for small businesses that was rolled out on April 3. At that point, 178,000 loans had been approved, totaling $50 billion.
Democrats and Republicans are at odds over how a $250 billion supplemental measure should be spent. Republicans want the aid to go exclusively to struggling businesses, while Democrats say the cash should be shared with states and hospitals.
The Wall Street Journal reported that a bank industry official said lawmakers may need to keep the money flowing or some businesses will be left out. “We think we’re going to need upwards of $1 trillion in order to satisfy the demand of America’s small businesses,” Richard Hunt, chief executive of the Consumer Bankers Association trade group, told the news service.