FORT WAYNE, Ind. (WANE) – Funds for one of the federal government’s small business lifelines has reached its peak.
The Small Business Administration (SBA) announced that no more applications for the Paycheck Protection Program (PPP) will be accepted. PPP might seem like random letters to some, but for small business owners this may be their saving grace during this pandemic.
Unfortunately, some businesses are currently shut out due to the program reaching its $350 billion The plan’s budget for the PPP is a program under the $2.2 trillion stimulus law enacted last month.
Many local businesses were forced to shut down because of the pandemic and are missing out on much revenue. With the CARES ACT, the PPP was created as a direct incentive for small businesses to pay their employees. It provides funds up to two months for not only payroll, but also rent, mortgage, and utilities. If the business owner uses at least 75 percent of the funds to employee payroll, the loan will become a grant and repayment is not required.
Another concern is whether the federal government will replenish the plan after the funds are gone. President Donald Trump and his administration have yet to reach an agreement with congressional leaders.
According to Kristin Smith, a credit analyst at 3Rivers Federal Credit Union, small business owners should take a stance.
“The only ones that can make a difference is our local officials. So they need to be in contact with them if there weren’t able to get the funding that was needed or if [they] found out the eligibility was something that they couldn’t be apart of,” said Smith. “They [congressional officials] are our voice in Washington.”
Click here, to review the latest SBA’s PPP report.