Paycheck Protection Program (PPP) Funding Runs Out: What Businesses Can Do Now

Updated: Apr 25, 2020

On Thursday, April 16th,, the federal government announced that the Paycheck Protection Program (PPP) ran out of money, meaning that the Small Business Administration (SBA) is currently unable to accept new applications for the PPP until Congress appropriates additional funding. The funding lapse also affects Economic Injury Disaster Loans (including EIDL Advances), although the SBA website notes that applicants who have already submitted their applications for the EIDL assistance program will continue to be processed on a first-come, first-served basis. Since then, Congress has approved a new $480 billion package to deliver aid to small businesses, including $310 in additional appropriations for the Paycheck Protection Program (PPP). Businesses are urged to immediately contact their primary banking institutions to learn about their options for securing funding through the latest round of PPP appropriations. Below is our original post from last week containing tips for businesses—whether you've received funding already or not.

We've been in contact with local banks to gather information to help businesses understand what steps they can take—whether you've already received PPP funding or not. See below for some helpful guidance, courtesy of our local banking partners. We're also working closely with organizations like the Small Business Advocacy Council (SBAC) and our elected officials in Washington, who are moving towards a legislative solution that may open up additional funding for small businesses.

What All Businesses Can Do Now

See below for some helpful tips we've received from local banks for businesses at various stages of the PPP application process. Situations may vary depending on which financial institution you use, so we'd recommend reaching out to your bank to get personalized guidance.

  • If you've already been funded: Many banks are still awaiting federal guidance on how the loan forgiveness provision will work. In the meantime, they recommend closely tracking your expenses related to the loan funds so you're ready to submit the necessary documentation once the time comes to apply for forgiveness.

  • If you submitted an application but haven't been funded yet: It depends on the financial institution. Some banks have indicated businesses that were notified that their applications were approved might still receive funding under the current round of PPP appropriations. For businesses that haven't received such notification and don't hear back in the next few days, it's possible that your PPP loans may not be funded unless Congress appropriates additional funding. In either case, it's best to reach out to your financial institution to get their insight on the status of your application. Depending on the bank, they might still process your application so it's ready to be funded if Congress appropriates new PPP funding.

  • If you haven't submitted an application yet: Most banks won't be able to accept new applications for PPP funds until additional funding has been appropriated by Congress, and no additional lending institutions are being added to the program. You may want to connect with your business banker to find out whether you can still work with them to gather the necessary documentation to have your application ready if additional funding is made available by the SBA.

While the SBA Has Run Out of Money for PPP, it Should be Replenished Soon

One of the most important federal developments for small businesses to understand is that federal funding for the PPP has depleted, meaning all $349 billion in forgivable loans have been approved by the Small Business Administration (SBA). However, we're optimistic Congress will soon approve additional funding for the PPP program, to the tune of at least $250 billion.

How to Know if Your Business Secured a First Wave PPP Loan

Many businesses may be in a situation where their lender has approved the PPP application and sent it to the SBA for approval, but they are unclear if they got the loan. If the SBA approves the loan, then it will generate a unique loan origination number that effectively signifies you will receive it.

If you’ve already gotten that loan origination number from the Small Business Administration or your lender has that, you are part of that $349 billion and you should be getting your loan disbursed. The thing to check on is where you are in that approval process.

The EIDL Program May Be Replenished as Well

The Economic Injury Disaster Loan (EIDL) program, which originally was giving out $10,000 cash advances, has also run out of money. We believe the EIDL program will eventually be restored and those loans are suitable for non-payroll expenses such as rent, mortgage, etc.

Ask Congress to Appropriate Additional Funding

It's important for our elected officials to hear directly from small businesses that have been impacted by COVID-19. Use this link to find contact information for your federal elected representatives, and reach out to share your perspective about the need for Congress to act quickly to appropriate additional funding to support small businesses.

Other Financial Assistance & Resources

Our COVID-19 Business Resource Page contains a complete list of financial assistance available to small businesses and is updated on a regular basis. Visit for the latest information.

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