SBA Is Out of Emergency Aid Money
April 16, 2020
The two federal emergency aid programs aimed at quickly putting money in the pockets of business owners and independent contractors have run out of money. This leaves many eligible Americans without access to funds that could keep them from going bankrupt, and could forestall an additional wave of unemployed workers from receiving help.
The first-come, first-served $349 billion Paycheck Protection Program had begun to ease some of the financial burden for a wide range of small businesses including real estate brokerages. But with many applicants stuck in limbo waiting for responses to their funding requests, their prospects remained uncertain on Thursday as Congress continues to wrangle over a way to provide additional funding.
Aware of the looming shortfall, the National Association of REALTORS® sent a letter to lawmakers on Monday seeking more funds to keep the programs operating. As of Thursday, the Small Business Administration had stopped accepting applications for both the PPP and the smaller Economic Injury Disaster Loan program.
The EIDL received $10 billion in funds to distribute in the form of up to $10,000 advance grants for businesses to address their working capital needs. Those funds were to be distributed within three days of applying and were intended to serve as a holdover until larger loans could come through.
Treasury Secretary Steven Mnuchin and Democratic leaders in Congress were expected to reconvene Thursday to come up with an agreement on a package to immediately increase SBA funding.
Stay up-to-date with NAR’s latest guidance on navigating the SBA emergency programs.
“Small Business Rescue Loan Program Hits $349 billion Limit and Is Now Out of Money” CNBC (April 16, 2020); Small Business Program SBA Program Intended for Quick Grants Is Running Weeks Behind” The Washington Post (April 15, 2020).
Updated: August 11, 2020