The Small Business Administration’s Paycheck Protection Program has run out of money for loans that most credit unions and banks would make, but PPP loans are still available through Community Development Financial Institutions, an SBA spokesperson said Wednesday.
When Congress reauthorized the PPP program, it created a set-aside for CDFIs and a portion of that money is still available, the spokesperson said. The SBA will continue funding PPP loans whose applications have been approved, but new loans will be made only through CDFIs the spokesperson added.
The entire program is set to expire at the end of the month.
“The SBA is committed to delivering economic aid through the many COVID relief programs it’s currently administering and beyond,” the spokesperson said
Credit Union National Association Chief Advocacy Officer Ryan Donovan said the fact that the program has run out of money early demonstrates the need for the loans. He said that eligible credit unions “stand ready to continue assisting small business owners with the remaining funds designated for community lenders.”