NEW YORK — The government’s paycheck protection loan program for small businesses is on hold. The Small Business Administration has announced that it reached the $349 billion lending limit for the program.
Thousands of small business owners whose loans have not yet been processed must now wait for Congress to approve a Trump administration request for another $250 billion for the program.
Lawmakers have been haggling over whether to extend the program as it stands now, or whether to add provisions that among other things would help minority businesses.
It’s unclear when they might reach an agreement that would allow loan approvals to continue
The program is part of the federal CARES (Coronavirus Aid, Relief, and Economic Security) Act which was signed by President Donald Trump on Friday, March 27. It's a $2.2 trillion bill that is being allocated to help individuals and businesses across the country.
Businesses with fewer than 500 workers were eligible to start applying on Friday, April 3 for a loan of up to $10 million. Independent contractors and self-employed workers started applying on April 10.