Federal emergency loan program for small businesses ends Tuesday

Marco Green
July 1, 2020

ME businesses have received about 25,700 loans worth more than $2.2 billion in paycheck protection loans since the program was established in April.

Through Saturday, New Jersey businesses have taken out 144,523 loans worth $17 billion.

The agency will not reveal precise dollar amounts of the loans and will instead provide a range for each loan.

Democrats drove a temporary extension of a popular subsidy program for small businesses through the GOP-controlled Senate late Tuesday, an unexpected development that came as spikes in coronavirus cases in many states are causing renewed shutdowns of bars and other businesses.

But the rules of PPP loan forgiveness changed during the program's runtime, which led to confusion among small businesses. That leaves roughly $130 billion left over in the fund. Close to two-thirds of the loans, 3.1 million, were for $50,000 or less.

"We are striking the appropriate balance of providing public transparency, while protecting the payroll and personal income information of small businesses, sole proprietors, and independent contractors", Treasury Secretary Steven Mnuchin said Friday, when the SBA announced it would reveal the names of some borrowers. However, that time was later extended to six months as it became clear the pandemic wasn't going to go away any time soon.

Earlier in June, U.S. President Donald Trump approved an expansion of the PPP program, which includes a "borrower-friendly" five-page loan application.

Other reports by Click Lancashire

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