The President today signed the Paycheck Protection Program and Health Care Enhancement Act, adding $320B to the small business coronavirus relief program that ran out of money last week.
Following the signing of the legislation, the SBA announced it would begin accepting applications again for the program on Monday, April 27 at 10:30am EDT.
While the initial $349B round of funding for the PPP was depleted in a matter of two weeks, some banking industry experts believe the second round has already been depleted, in effect, before it’s even been officially released by the SBA.
Florida Senator Marco Rubio took to Twitter earlier today to announce the imminent signing of the legislation and noted that the PPP is expected to reopen on Monday, giving banks and credit unions the weekend to prepare for the coming surge.
#PPP UPDATE pic.twitter.com/lxmconPp1C
— Marco Rubio (@marcorubio) April 24, 2020
However, according to reporting by CBS News, banks never stopped taking applications when the original round of funding ran dry. Some financial institutions told the news outlet that they took a year's worth of loan applications over the last weekend alone. These applications are now queued and ready to cut into the $310B that the House approved on Thursday, whenever the SBA officially decides to reopen the program.
This sets up a potential mad dash to get loans approved and boarded to the SBA.
Our team will be monitoring the situation from now, throughout the weekend and will continue to provide our partner banks with proactive launch checklists and audit procedures. Once the PPP program reopens on Monday, Numerated will be working around the clock with our partner banks and credit unions to ensure their customers can get their PPP loans approved and boarded quickly.