Is There Still Ppp Money Left Today? The Paycheck Protection Program (PPP) was a loan program created to help small businesses keep their employees on the payroll during the COVID-19 pandemic. The program ended on May 31, 2021, and all funds have been disbursed. However, there are still some businesses that have not received their PPP loans. These businesses may be eligible to apply for a loan through the SBA’s Economic Injury Disaster Loan (EIDL) program. The EIDL program offers loans of up to $2 million to small businesses that have been affected by the pandemic.
Eligibility and Funding Availability
The Paycheck Protection Program (PPP) was a loan program created by the U.S. government to provide financial assistance to small businesses and nonprofits during the COVID-19 pandemic. The program was initially funded with $349 billion, which was later increased to $659 billion. As of August 8, 2021, there is still approximately $7.6 billion in unallocated PPP funds available.
To be eligible for a PPP loan, businesses and nonprofits must meet the following criteria:
- Have fewer than 500 employees
- Have been in operation since February 15, 2020
- Have experienced a decline in revenue due to the COVID-19 pandemic
- Be able to demonstrate a need for the loan
The amount of funding available to each eligible business or nonprofit is based on the following factors:
- Average monthly payroll costs
- Number of employees
- Type of business or nonprofit
The maximum loan amount for most businesses and nonprofits is $2 million. However, certain businesses and nonprofits may be eligible for loans of up to $10 million.
| Loan Amount | Forgiveness Percentage |
|---|---|
| Less than $50,000 | 100% |
| $50,000 to $100,000 | 75% |
| $100,000 to $2 million | 50% |
| Over $2 million | 25% |
Limited Business Categories
The PPP loan program officially ended on May 31, 2021, and there is no more money available for new loans.
However, businesses may still be eligible for forgiveness on existing loans by submitting a forgiveness application by May 10, 2023 for loans made in 2020, and by May 10, 2024 for loans made in 2021, and meeting the eligibility requirements.
Role of Lenders and Financial Institutions
Lenders and financial institutions played a crucial role in distributing and managing PPP loans. Here’s how they were involved:
- Loan origination: Banks, credit unions, and other lenders originated and processed PPP loan applications. They evaluated borrowers’ eligibility, collected necessary documents, and submitted loan requests to the SBA.
- Loan approval: The SBA approved or denied PPP loan applications based on the information provided by lenders. The approval process generally took a few days to a few weeks.
- Loan disbursement: Once approved, lenders disbursed the PPP funds to borrowers’ bank accounts. This process typically took a few days.
- Loan forgiveness: Lenders played a role in facilitating loan forgiveness. They collected documentation from borrowers to support their forgiveness applications and submitted them to the SBA for review and approval.
| Lender Type | PPP Loans Originated | Forgiveness Processed |
|---|---|---|
| Community Development Financial Institutions (CDFIs) | $31.4 billion | $15.7 billion |
| Minority Depository Institutions (MDIs) | $10.7 billion | $5.3 billion |
| Small Business Banks | $141.7 billion | $70.8 billion |
| Large Banks | $193.2 billion | $96.6 billion |
Impacts on Small Businesses
The PPP has had a significant impact on small businesses. A survey by the National Federation of Independent Businesses found that 70% of small businesses that received a PPP loan said that it helped them keep their employees on the payroll. Additionally, the survey found that 66% of small businesses that received a PPP loan said that it helped them stay in business.
- Kept employees on the payroll
- Helped businesses stay in operation
- Provided financial relief during the pandemic
The PPP has also helped to level the playing field for small businesses. Before the pandemic, many small businesses were struggling to compete with larger businesses. The PPP has helped to provide small businesses with the financial resources they need to compete.
| Year | PPP Loans Approved | Total PPP Loan Amount |
|---|---|---|
| 2020 | 5.2 million | $525 billion |
| 2021 | 2.7 million | $243 billion |
Well, there you have it, folks! Now you know the truth about the PPP money situation. So, if you were counting on getting your hands on some of that sweet, sweet cash, you might want to start looking for other options. But hey, don’t be too bummed. There are plenty of other ways to get your business back on track. And who knows, maybe the government will come up with another stimulus package in the future. In the meantime, thanks for reading and be sure to check back later for more updates. Stay safe and keep your business thriving!