Federal small business loan program runs out of money

Federal small business loan program runs out of money
The government announced Thursday that the $349 billion Paycheck Protection Program (PPP) has run out of money for those small business loans. (Source: Pexels)

RICHMOND, Va. (WWBT) - The government announced Thursday that the $349 billion Paycheck Protection Program (PPP) has run out of money for those small business loans.

Thousands of small business owners whose loans have not yet been processed must now wait for Congress to approve another $250 billion for the program.

In Virginia, 26,880 applications were processed by April 13, totaling $6.6 billion according to the Small Business Administration.

The loans are forgivable and since the program’s launch, it’s been overloaded with applications.

Bruce Whitehurst, president and CEO of the Virginia Bankers Association, says Congress needs to act soon.

“There are negotiations between the sides, but they seem to have already agreed on the what. And the how much, so we really need to see action really eminently to be able to help small businesses,” said Whitehurst.

Lawmakers have been haggling over whether to extend the program as it stands now, or whether to add provisions that among other things would help minority businesses.

It’s unclear when they might reach an agreement that would allow loan approvals to continue.

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