Head of NC Bankers calls for quick boost COVID-19 loans as $349B fund runs out

RALEIGH – Congress and the Trump Administration should act quickly to add a fresh infusion of cash into the COVID-19 disaster loan program for small businesses known as Paycheck Protection Plan after the initial $349 billion ran out on Thursday.

“Our expectation is that congressional leadership will be able to put politics aside and approve additional funding for the Paycheck Protection Program,” NC Bankers Association CEO Peter Gwaltney told WRAL TechWire.

“Our hope is that they will be able to do this quickly, today or tomorrow.”

Talks on Wednesday failed to resolve differences about additional funding. The Small Business Administration announced that the PPP program hit its limit early Thursday.

“We urge Congress to appropriate additional funds for the Paycheck Protection Program—a critical and overwhelmingly bipartisan program—at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks,” said US Treasury Secretary Steven Mnuchin and U.S. Small Business Administration Administrator Jovita Carranza in a joint statement.

“The high demand we have seen underscores the need for hardworking Americans to have access to relief as soon as possible. We want every eligible small business to participate and get the resources they need.”

Firms that have applied have to wait until additional funding is made available – assuming a deal can be made.

“North Carolina banks stood by their small business customers well before the Paycheck Protection Program (PPP) was created by the CARES Act and will continue to stand by them now as PPP funding nears depletion,” Gwaltney said in a statement shortly before news emerged that the funds had been exhaused.

“Banks will continue to work closely with small businesses to tailor financial solutions for their individual situations,” he added.

As of Monday night, according to the latest SBA figures available, nearly 24,000 loans were approved for North Carolina businesses totalling $5.7 billion. Gwaltney cited an average loan amount of $244,000.

The SBA said more than 1.6 million loans were approved for $338 billion as of early Thursday.

On its website the SBA reported:

“Lapse in Appropriations Notice:

SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.

EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

For more information, check out this SBA website