Lapse In SBA Funding Appropriations. What Does That Mean For Your Business?

mobile computer coronavirus employer workforce appropriations

In a statement released by the Small Business Administration this week, Secretary of the Treasury Steven Mnuchin and Administrator Carranza stated: “The SBA has processed more than 14 years’ worth of loans in less than 14 days…by law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations.”

In plain language, the SBA has temporarily suspended loan applications at this time, including the Economic Injury and Disaster Loans and the $350 billion Paycheck Protection Program, which is administered through commercial banks.

Both programs are associated with the COVID-19 health crisis that has shut down non-essential businesses in Virginia and across the country.

The SBA is urging Congress to appropriate additional funds so that they are able to process additional loan applications. We fully expect that more money will be added through the federal appropriations process soon, so this is a temporary pause in the process.

As more information becomes available, we will continue to provide you with the latest information on applications and availability.

In the meantime, we’d like to hear from you in order to better know how we can help, please take the following survey to help better shape the local response:

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