Paycheck Protection Program loan limit reached, applications halted

Thu, 04/16/2020 - 12:45pm

WASHINGTON, D.C. — The Small Business Administration, tasked with providing loans under the Paycheck Protection Program and the Economic Injury Disaster Loan Program, has announced it has reached the maximum loan limit authorized and appropriated by Congress. 

As such, as the SBA is no longer able to accept any new loan applications for the Paycheck Protection Program at this time.

Bangor Savings Bank posted on its website its loan officers are no longer able to load PPP applications into the SBA system as a result. Camden National Bank, similarly, posted on its website the SBA is not accepting applications at this time. 

In a joint statement April 15, U.S. Treasury Secretary Steven T. Mnuchin and U.S. Small Business Administration Administrator Jovita Carranza urged Congress to appropriate additional funds. 

“The SBA has processed more than 14 years’ worth of loans in less than 14 days, the joint statement read. “The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time. The EIDL program is also providing much-needed relief to people and businesses. By law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations. The high demand we have seen underscores the need for hardworking Americans to have access to relief as soon as possible. We want every eligible small business to participate and get the resources they need.”

In a statement, U.S. Senator Susan Collins of Maine called on the immediate appropriation of an additional $250 billion for the PPP program. 

“We need to replenish this program immediately so that these individuals can access this critical assistance,” said Sen. Collins. “As of this morning, $2.22 billion in forgivable Paycheck Protection Programs loans have been approved for 16,196 Maine small employers. This funding is providing crucial support to an estimated 180,000 employees. The extremely high demand for these forgivable loans underscores the urgent need for Congress to act now.”