April 16, 2020
SBA No Longer Accepting PPP and EIDL Loan Applications
Posted by Jenn McCabe
The SBA announced this morning that they are no longer accepting applications for the Paycheck Protection Program (PPP) loans or Economic Injury Disaster Loans (EIDLs), due to funding limits being reached. They did advise that any EIDL loan applications already received will continue to be processed on a first come-first served basis.
If you have applied for a loan but not yet received approval, you need to ask the bank if they received an “SBA #” for the application. If they have one, it means they got the allocation. If not, the application is on hold until/unless there is more funding.
On that subject, the Senate continues to be locked in a stalemate over additional funding for the PPP. Last week, Republicans pushed for an additional $250 billion in emergency funds, but Democrats blocked that by asking for $250 billion more to be included in the bill for hospitals and state/local government assistance. Negotiations are ongoing, but any hope for a Senate vote this afternoon failed.
As a result, no more funding will be possible until the middle of next week at the earliest, as the Senate will not meet in pro forma session again until Monday, and the House would be required to ratify it before any funding takes place.
Meanwhile, the Main Street Lending Facility process remains undefined as the public comment period comes to a close today. The Fed is expected to release additional guidance on the loan application and bank underwriting requirements shortly after the comment period ends. Banks are not likely to be able to begin taking applications for this $600 billion program until next week at the earliest. This program is offering loans of as little as $1 million and as much as $150 million to businesses with up to 10,000 employees or $2.5 billion in 2019 revenue.
The Rapid Response Team is continuing to closely monitor all of these programs and will keep you posted when new information is released.
Jenn has more than 25 years of outsourced accounting and finance experience, with a particular expertise in startups and the advertising and creative production industries. She is passionate about seeing companies utilize the latest accounting technology to maximize their efficiency, productivity, and ultimately, success.
Before joining Armanino, Jenn founded and led Team Jenn Corp., a firm dedicated to the strategic financial management of startups and small businesses, offering a comprehensive back office solution with accounting, finance and HR solutions. Previous roles include stints at advertising giant Ogilvy and Mather, and in the cash management industry.
Jenn has a bachelor’s degree in economics from Pepperdine University and is a member of several professional associations including the National Society of Accountants, ProVisors and the Women’s Business Enterprise Network.