The $349 billion Paycheck Protection Program, designed to help small businesses during the coronavirus pandemic, ran out of funds April 16, less than two weeks after launching.
The $349 billion Paycheck Protection Program, designed to help small businesses during the coronavirus pandemic, ran out of funds April 16, less than two weeks after launching.
The program experienced technical issues while getting off the ground, and several businesses reported experiencing delays in the approval process. The program, which included forgivable loans of up to $10 million for businesses with under 500 employees, was administered by the Small Business Administration via participating banks.
As of April 13, the SBA reported that the construction industry had received more approved loans than any other industry, with 114,838 loans, 13.73%, for a total of over $33.9 billion. Construction was followed in loans by personal, scientific and technical services (12.26%), and manufacturing (12.25%).
Industry organizations, including the Hardwood Federation and American Coatings Association, are urging Congress to replenish the program for other small businesses struggling during the pandemic.
Since PPP funds ran out, it's been reported that several large companies, among them Wendy's, Potbelly and Ruth's Chris Steak House, received the small business loans available through the federal stimulus program. After criticism, Shake Shack, the restaurant chain, announced it would return its $10 million loan, according to The New York Times.
"Unfortunately, they were in line as soon as the window opened for this program and took a lot of resources away from those small business owners where this was their only option," Holly Wade, director of research with the National Federation of Independent Business (NFIB) lobby group, told BuzzFeed News.
