Small business loan fund still flush, but dwindling fast

MOSES LAKE — There is enough in the Paycheck Protection Program (PPP) loan fund to last for a few more weeks, according to Allan Peterson, a business development manager with the Small Business Administration.

During a weekly webinar organized by Grant County Economic Development Council and Moses Lake Chamber of Commerce, Peterson said the fund has roughly $100 billion in it right now, and that loans are being made at the rate of roughly $2 billion to $3 billion per day.

The PPP was created as part of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act in late March. Initially, Congress appropriated $349 billion for those loans, which are made through private, SBA-approved lenders, to companies with 500 or fewer employees.

However, that money was exhausted after two weeks, and Congress approved an additional $320 billion in late April to replenish the fund.

The loans were intended to cover eight weeks of payroll plus rent and utilities. Provided a borrower uses 75 percent of their loan for payroll, the loans are supposed to be forgiven, though Peterson said the rules for loan forgiveness have not been written yet.

“Keep all your records, and put that money in a separate account,” Peterson advised borrowers.

Peterson said he expects the current PPP program to last “another two weeks.”

“There’s no talk of a third round,” he said.

Peterson also said the SBA’s Economic Injury Disaster Loan (EIDL) program, which is borrowed directly from the agency, is still open but is currently only taking applications for agribusinesses. The EIDL is designed to give businesses a $10,000 grant up front plus compensate businesses for up to $2 million in losses caused by the COVID-19-related shutdowns.

However, both The Seattle Times and The Washington Post reported on Thursday that the SBA has capped all EIDL loans still being processed at $150,000.

Brant Mayo, the executive director of the Economic Development Council, also said during the webinar that he should know next week who in Grant County has received Gov. Jay Inslee’s Working Washington Small Business Emergency Grants.

The governor made $10 million available from his emergency fund for a number of up to $10,000 grants to help small businesses cover essential expenses.

Charles H. Featherstone can be reached at [email protected].