SBA Announces PPP and EIDL Loan Programs are Out of Money

The Small Business Administration (SBA) has announced it has run out of funding to process any more small business loans through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) that  were created under the CARES Act. These loan programs are designed to help small businesses that have been harmed by the COVID-19 pandemic.

NAHB has sent a letter to Republican and Democratic leaders in Congress urging lawmakers to act immediately to ensure sufficient resources and funding are available in the SBA’s PPP and EIDL program to meet the considerable needs of the nation’s small businesses, including those in the residential construction sector.

Additionally, NAHB is calling on Congress to make improvements that will help small businesses, non-profits and many housing-related firms to access this critically important program. As it stands now, the PPP excludes a large percentage of home builders and prohibits land developers and multifamily property owners from participating in the loan program.

“We believe this rule runs counter to the congressional intent of the CARES Act to help the broadest universe of small businesses, as well as congressional intent governing the SBA,” the NAHB letter stated. “We ask that you call on the SBA to adhere to the congressional intent of the CARES Act to get desperately needed assistance
to all small businesses.”

NAHB also called on Congress to allow small non-profit trade associations across the nation, including local home builders associations, to take part in the PPP.  “Amid the current economic turmoil, state and local home builder associations, most organized as 501(c)(6) non-profit entities, are losing revenue as association members retreat from professional organizations,” the letter to lawmakers stated. “Many associations have been forced to cancel home and trade shows, among other revenue-generating events, as government directives have banned mass gatherings.  The federal government must step in to help all types of small businesses.”

For more information, visit nahb.org or contact Alex Strong at 800-368-5242 x8279 or Heather Voorman at x8425.

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Comments (9)

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  1. Skrocki says:

    Small businesses are relying on government assistance that was promised. Those businesses that tried to maintain their company without having to put a strain on the public and remain open are now being “punished” because the money has “run out”. Nothing like encouraging people to give up early and be first to get a free handout. I’m very disappointed that the government is not supporting those who are willing to put in the effort and hard work to keep their company afloat.

    • Katie says:

      Agreed! We have kept all of our employees on and paid to avoid burdening an unemployment system that is overwhelmed. We will likely not see a dollar.

  2. Jan Kifer says:

    I find it hard to understand how a small business gets a 20 million dollar loan. What’s the intent followed here?

  3. Daryle Kuiper says:

    If I filed with my bank for the first round and was not included in the first disbursement will I have to file again?
    Also I think some banks are confused on what is needed for verification.. I am a sole owner LLC and they needed my 2019 schedule C for verification of my payroll, because of that confusion I missed this first round. Not blaming the bank but want to be sure I don’t repeat this mistake–accountant and bank disagreement! what to file

    • NAHB Now says:

      For those who have already applied for a loan, more guidance from the SBA will be available about next steps after Congress approves the additional funding, which is expected to be later this week. Stay tuned.

  4. As a woman owned business owner I feel as though they have misappropriated the funds to businesses that should not be considered small business. What is considered a small business? I thought it was under 500 employees. I have seen where these large restaurants like Ruth’s Chris have been given billions of dollars BEFORE the businesses that actually NEED the money and QUICKLY or we won’t survive!! There is something VERY WRONG about this and something MUST BE DONE and YESTERDAY!!!

  5. Laura Wozniak says:

    I would like to understand how they could have run out of money before the first to apply go any funding. We applied for the EIDL on the very first day, then again when we were notified that we had to reapply using the streamlined form. Thank God, I hope we may not need it after all.

  6. I’m finding it hard to compete with unemployment. I have burnt through all of my capital keeping my crew alive and now have nothing left. The promise lasted long enough for me loose all I had saved. A tax credit doesn’t mean much now.

  7. Kathleen says:

    Are there any plans to provide money for the EIDL for a third time?

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