Banks say they ran out of PPP funding ‘within minutes’
The banks ran out of $ 350 billion allocated to the Small Business Administration (SBA) Coronavirus Emergency Relief Fund within minutes of the program app becoming available, according to a report by NBC News.
“We didn’t even spend the first five minutes of nominations,” a senior bank executive from JPMorgan Chase told the point of sale.
The bank has received more than 60,000 applicants for the paycheck protection program. A senior Bank of America executive told NBC that on day one, the bank was receiving more than 10,000 requests per hour.
The paycheck protection program, included in the $ 2.2 trillion stimulus package signed last month, provides same day loans to businesses affected by the coronavirus pandemic if they promise to continue paying their employees.
The program is based on a “first come, first served” principle, which means that businesses that have not submitted applications early in the application period are unlikely to see any federal assistance.
“You get the money, you get it the same day, you use it to pay your workers. Please bring your employees back to work if you let them go, ”Secretary of the Treasury Steven mnuchinSteven Mnuchin Democrats vindicated in GOP filibuster, says Schumer Yellen provides signature for paper money Biden’s name will not appear on stimulus checks, White House says READ MORE said at a press conference the day before the program went online.
The massive influx of application activity left the program’s coffers empty on Thursday, as Democrats and Republicans scramble to reach a bipartisan deal on more than $ 250 billion in additional funding for the program in a fourth draft. coronavirus relief law.
Democrats want to include more funding for hospitals and local governments in legislation, while Republicans want “clean” funding for the small business program without additional provisions.
President TrumpDonald Trump Fox News Says Smartmatic Trial Should Be Dismissed DC Sets Trial for Trump Inaugural Mass Arrests CNN: Trump Advisors Urge To Make PSA Pro-Vaccine MORE Saturday, called on lawmakers to reach a deal and replenish the fund.
“The funding is now fully depleted. It is depleted. It is gone,” he said during the daily press briefing by the administration’s coronavirus task force.
Senate Democrats on Friday called on the SBA to produce more comprehensive data showing where the money allocated in the stimulus bill ended.