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MENDOCINO Co., 4/16/20 — The Small Business Administration (SBA) has temporarily halted a number of small business support programs, designed to provide loans to businesses suffering due to the pandemic, because an overwhelming demand has exhausted the allocated funding, according to an announcement today. The Payroll Protection Program (PPP) and the Emergency Injury Disaster Loan programs are both temporarily suspended.
Although the programs were intended to provide quick access to capital, especially for businesses struggling with payroll during the shelter in place, many small businesses struggled to submit applications with approved lenders when the PPP program initially opened, and due to a cap on the funding allocated by Congress, many banks closed their application windows quickly, limited enrollment to certain existing customers, or did not participate at all.
Are you a local business struggling with the shelter in place order, and did you try to apply for one of these programs? If so, we want to hear from you at [email protected] or in the comments.
West Business Development Center, which is the local SBA organization in Mendocino County, has put together a frequently updated information page with resources, including webinars, a free online directory, and other kinds of support, for small businesses, that you can find here.
Here’s the announcement from West Business Development Center:
COVID-19: Paycheck Protection Program and Economic Injury Disaster Loan Program Update
Small Business Administration temporarily halts loan funding
UKIAH, Calif. – April 16, 2020 – Today U.S. Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administration Administrator Jovita Carranza announced that both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) have reached their capacity of funding.
On April 15, both the EIDL loan portal and the PPP program were closed to new applications. The Small Business Administration (SBA) continues to process current EIDL applications on a first-come, first-served basis, which means that if a business has submitted an SBA application and has received a confirmation number beginning with a “3,” the application is still in line for processing. PPP applications for lenders are being placed on hold. While there is a temporary pause in these programs, Congress is working on an additional stimulus package to increase the funding capacity of both the PPP and EIDL programs. The SBA anticipates Congress will reach an agreement within the next few days.
With no end in sight of the COVID-19 lockdown, West Business Development Center will continue to address business owners’ concerns and to be an informational hub as well as a thought partner during this difficult time. West Center has the network of support for businesses in Mendocino and Lake Counties to assist with alternative opportunities in the short-term, and to prepare for when these programs re-open and for the recovery ahead.
West Center’s CEO, Mary Anne Petrillo, said, “While we do not have all of the answers, our role is to figure out how to best assist each of you with surviving the next couple of months and preparing for the recovery. Thank you all for being amazing resourceful individuals. Our community will become stronger as we get through this time together.”
West Center encourages all small businesses in the county to visit their website at www.westcenter.org for the latest business-related news and information about upcoming webinars.