April 23, 2020; CBS News
Even as the next round of funding under the Paycheck Protection Program is being approved and signed into law, it may already have been spent, say bank industry groups, who report that the applications they have already processed and sent to the SBA probably exceed the $310 billion that will replenish the fund next week.
The original $350 billion put into the fund was committed within 13 days after it was made available.
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“The majority, if not all, of the funding Congress is considering right now is already exhausted,” said Nick Simpson, a spokesman with the Consumer Bankers Association.
Under the “first-come, first-served” rules of the fund, those already waiting in the queue with applications filed must be addressed, with one exception—nearly a fifth of the money has been reserved for applications submitted by smaller lenders. So, if you are going to file a new application, it would be wise to choose a smaller lender to do so.—Ruth McCambridge