WASHINGTON — A $350 billion small-business relief program designed to prevent layoffs during the coronavirus crisis has run out of money and is no longer taking applications, the Small Business Administration said Thursday.
The Paycheck Protection Program, part of a $2 trillion emergency stimulus package passed by Congress last month, was overwhelmed with applications from businesses trying to stay afloat and pay their workers during the economic crisis.
“The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding,” a spokesperson said Thursday morning.
The SBA tore through the money in two weeks and business owners now face an extended period of uncertainty after Senate Democrats blocked legislation to add an additional $250 billion to the program.
There were more than 1,637,000 applications totaling more than $339 billion, a source familiar told The Post.
The small-business program gives companies with up to 500 employees, and in exceptions more, loans to cover payroll and overhead. The loans will be forgiven if they don’t lay off workers.
Business owners are now left in limbo, with the House adjourned until May, and any measures to increase the relief program expected to be delayed until then.
The administration is used to processing $25 billion a year — with the SBA processing more than 14 years’ worth of loans in less than 14 days.