Federal Loan Program Runs Out Of Money, Stranding Many Small Businesses
Only 2% of small businesses in New York and over 3% in Connecticut have been approved for loans through the Small Business Administration’s program to help companies hurt by the coronavirus. That program ran out of money today.
In New York, nearly 41,000 loans, totaling over $11.7 billion, were approved as of Monday. In Connecticut, nearly 12,000 loans, adding up to almost $3 billion, were approved.
Other states, like North Dakota, had a higher percentage of loans approved, while others, like Texas, had more money distributed.
The Paycheck Protection Program was created by the recent federal stimulus bill and launched earlier this month. Loans are forgivable to businesses that retain their payroll during the COVID-19 pandemic.
Congress will consider more funding for the program.