PAYCHECK PROTECTION PROGRAM OUT OF MONEY
As expected, the federal Paycheck Protection Program has run out of money.
The Small Business Administration announced this (Thursday) morning that no further applications for the Paycheck Protection Program would be accepted. Congress had allocated $349 billion dollars for the program to help small businesses keep employees on their payrolls. Businesses began applying for the loans on April 3rd through their financial institutions, but almost immediately it became evident that Congress would need to add a second round of funding. That did not happen, and Congress is not scheduled to return to session until next Monday.
Loan officers for Brenham’s community banks have been busy the last two weeks trying to secure SBA loans for their business customers. Brenham National Bank, Citizens State Bank and Bank of Brenham processed hundreds of applications prior to the program running out of money. The President and CEO of the Independent Bankers Association of Texas Christopher Williston expressed his frustration with the process in a news release this afternoon. Williston said, “Community banks across Texas have stepped up in a major way to support small businesses and have been met with constant challenges, changes and delays in their attempts to process these loans. Virtually all of the banks we have been in contact with have numerous applications still unapproved, despite their heroic efforts to move this process forward. There is rampant frustration from both prospective borrowers and the banks attempting to meet an unprecedented demand for these critical loans.” Williston urged US Congressional and Administrative leaders to make providing additional funding for the program an immediate priority to help small businesses during this crisis.