With millions in small business owners still waiting for their bank to get back to them on the status of their business continuity loan/grant application, it appears that some applicants have been more equal than others, and according to the Journal, the small-business loan program also known as the Paycheck Protection Program – which now finds itself at the center of a clash between congressional Democrats and Republicans – is expected to run out of money later Wednesday.
Negotiations between Congress and the White House, which reportedly resumed Wednesday over replenishing the small-business loan program designed to support businesses hit by the coronavirus pandemic, will take on a new urgency after the program is expected to exhaust its initial allocation of $350 billion as early as the close of business today. As of Wednesday morning, the Small Business Administration said it had approved about 1.3 million applications, totaling more than $289 billion in loans.
While both Democrats and Republicans want to add $250 billion to the small-business aid program, the two parties have been sparring for days over whether to add restrictions to the funds. As reported previously, Democrats want to expand access to the loans as well as include more money for hospitals, food assistance and state and local governments. Republicans, on the other hand, said they want to keep the bill focused on increasing small-business aid and defer other funding debates until the next, broader legislation is crafted.