SALT LAKE CITY, Utah (ABC4 News) – The Small Business Administration announced on Thursday their Paycheck Protection Program had exhausted all it’s allocated funds, leaving thousands of applications pending and several others without a way to apply.
Over 1,800 lenders who helped facilitate the PPP loans are left with pending applications they were unable to process before the SBA announced they had exhausted the $349 billion allocated for program.
This has left many businesses, including self employed applicants having to wait an extra week to apply, concerned about how they will get help. While it is expected that Congress is working to sign off on additional PPP funding, some companies’ have already gone a month without assistance, and might have to look elsewhere for help.
When the program rolled out on April 3, nearly 10 million applications were received within just a few days. While some were approved, most were not.
There were 21,257 loans approved in Utah within two weeks, for a total of almost $3.7 billion. That is more than 17 times what is normally processed in a year, according to Marla Trollan, SBA Utah District Office Director.
Even though funding is currently unavailable, Trollan said they are encouraging businesses to be ready, and to continue working with their lender. The SBA said they will continue to monitor the situation in Washington regarding new funding and will notify the public if the loan programs open back up.
Congressman Ben McAdams called on Congress on Friday to immediately pass legislation to add at least $250 billion to Small Business Administration loan programs.
“This is the emergency and this is the most important thing Congress can do to help Utah’s working families keep receiving a paycheck to pay their bills as we continue our necessary response to the coronavirus. I’m calling on Democrats to make this deal and get the money to our small businesses now,” said McAdams.
Those who had already applied, but not been approved, will not see any funding from the program unless more money is allocated to the program by Washington. For lenders, those applications are “on hold” until further notice.
Troy Rasmussen with Mountain America Credit Union said they too are unable to accept new applications at this time.
“For applications already in process, an email will be sent with additional details,” said Rasmussen. “Those with applications in progress with us will stay in queue and if/when the government adds additional funds to the program, we’ll be able to pick up where we left off.”
Rasmussen also said if more funding becomes available, Mountain America will re-open the process to accept additional applications.
For those with additional questions for the SBA office in Utah, you can direct your questions to email@example.com or call (801) 524-3209.
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