PPP Loans, Act II

After a week of partisan political wrangling in both houses of Congress, a bill to add funding to the dead-broke Paycheck Protection Plan loan program has been passed and signed into law by President Trump.

The original $350,000,000,000 ($350 Billion) dollars was used up within the first ten days of the program. Much of the money went to large corporations that few American consider “small business”.

The new funding allocation will provide the program an additional $310 billion dollars, plus another $60 billion for the also-broke EIDL program and several other disaster funding programs.

Republicans pushed to simply add funds to the existing program, which ran out of money a week ago. Democrats delayed the plan in order to push for inclusion of a variety of items from their perennial shopping list of DNC party-platform legislation.

In any case, the SBA is due to resume accepting Paycheck Protection Program applications from hundreds of participating lenders on Monday morning, April 27, 2020.

With millions of businesses shut down and unemployment numbers nearing 30 million people, it is clear that even this funding round is not going to be enough to fill immediate demand. Estimates from knowledgeable banking experts suggest that the new round of funding will be exhausted with 2 to 3 days.