April 28, 2020
As the New York Times reports here, the 10-day pause in SBA funding for Paycheck Protection Program (“PPP”) applications enabled lenders to get in order and carefully complete their paperwork for tens if not hundreds of thousands of new applicants, but when the portal finally opened up today at 10:30 AM, it was overwhelmed, causing the server to crash. This allowed only a trickle of applications to be successfully processed on the first day of Round II of PPP funding.
As the article says, “bankers were expecting the money to once again run out quickly,” meaning knowledgeable market participants predict that there will be winners and losers among the contestants for a still-limited supply of federal monies. Those who get processed quickly will get full funding; those that do not may get nothing. Clearly, Congress will need to approve a third and perhaps fourth round of funding for the program to fund all eligible small businesses.
Contact Rebecca Simpson Heimlich (513.797.2856) for help accessing PPP funds or assuring your path to their forgiveness.