UPDATES ON FEDERAL LOANS FOR SMALL BUSINESSES

Available funds for two key COVID-19 relief programs for small businesses – the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) – have reportedly been exhausted. The news underscores the demand for the program and highlights the need for additional funding.

• See also: GLI’s Guide to Federal Loan Programs for Small Businesses During COVID-19

Congress continues to negotiate a plan to inject more federal dollars into the programs but it is unclear when a deal will be reached or how much lawmakers will appropriate. In the meantime, employers who have applied for these programs should stay in contact with their lender for PPP loans and the U.S. Small Business Administration for EIDL. SBA customer service can be reached at 1-800-659-2955 or disastercustomerservice@sba.gov. Employers – whether they have applied or not – should also consider reaching out to Kentucky’s Small Business Development Center for guidance.

While the news of PPP and EIDL funds running out is distressing, SBA has also reported that billions of dollars of support for small businesses will soon start flowing into Kentucky and Indiana from PPP. As of April 13, 2020:

• Kentucky businesses had been approved for 17,216 loans totaling $3.3 billion.
• Hoosier businesses had been approved for 23,583 loans totaling $5.9 billion.
• Nationally, $247 billion had been approved.

According to SBA, the average PPP loan has been $239,152. In terms of approved dollars, the construction industry had so far received the largest share at 13 percent. Manufacturing had received 12 percent. Accommodation and food services had received 9 percent.