SAN DIEGO — The Small Business Administration stopped accepting applications for its Payroll Protection Program Thursday after it exhausted available funding. Congress authorized $349 billion for the program, which gives companies a loan to keep paying employees during the pandemic, but the money ran out in less than two weeks.
‘It's not a good day, obviously,” said Walter Lacayo, who does accounting for dozens of San Diego's small businesses. "None of my 15 clients that I've submitted applications for have received anything, so I'm wondering where and who received the money.”
Lacayo is hopeful those who already submitted applications will still receive some money as the SBA works through a backlog of forms, but not all businesses can afford to wait weeks or months for it to come through.
“I've just received calls within the last couple of days saying ‘you know, Walter, if this stay-at-home order continues and we don't receive help, our business is going to go under,'” said Lacayo.
Congress is still negotiating additional funding for the PPP. Lacayo encouraged businesses to still send in applications, possibly through third-party companies, so they are potentially first-in-line if the program resumes.
He also encouraged owners to apply for programs being offered by state and local governments that have separate requirements and to get free advice from the SCORE Association.
“That's what we're doing for our clients, not waiting only for that particular type of loan,” said Lacayo.
“[Other programs] are available. You just have to seek them out.”