U.S. Air Force file photo
Written by Gabriel Dillard
Money has run out for the U.S. Small Business Administration’s COVID-19 relief lending, which includes the $350-billion Paycheck Protection Program.
The news was announced on the SBA’s website under a “Lapse in Appropriations” notice.
“SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding,” according to the website. EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.”
Applying for the Paycheck Protection Program has been an exercise in frustration for many local business owners. In an email survey of business owners conducted last week by The Business Journal, out of 28 respondents who applied for the loans, only two reported receiving any funds.
Congress has been deadlocked on the addition of $250 billion into the program.
Local community banks are still working to process the loans. A vendor for Fresno First Bank announced Thursday it had completed an automated online portal to review applications. Steve Miller, CEO of Fresno First Bank, said they had first engaged DocFox several months ago to help manage high risk and remote customer acquisition strategies.
“The user interface is amazing and really steps up our customer experience. When we saw the potential workload that was associated with the SBA PPP program, DocFox was my first call. They got us up and running in 2 days, which is lightning speed even for the fintech world, and we now have an effective and agile platform that will help our bank better navigate the future banking,” Miller said in a statement.
Central Valley Community Bank on Wednesday reported it had received client applications of about $150 million for the Paycheck Protection Program “and is working diligently with the SBA to qualify clients to receive PPP loans.”