PPP Funding Update: What You Should Know This Week

Here’s a quick update on everything you need to know about the PPP this week, including funding available, latest eligibility changes and common questions. We also did another recap of other SBA programs over the weekend.

Will PPP Funding Run Out?

The PPP program is open for applications until May 31, but many experts expect that the program will run out of funding before its deadline. Estimates for how much longer the PPP’s funding will last range from just two weeks to a month.

Based on our data, we expect the program’s funding to run out in the next 3-4 weeks, which would mean funds will be available until approximately May 20th at the latest.  85% of the PPP’s allotted funding, over $240 billion, has already been distributed. Approximately $44 billion remains to be distributed.

If you're considering applying, it's best to do so sooner rather than later. Here are our two partner lenders: Bluevine and Funding Circle.

Will More Funding Be Allotted?

There are no concrete plans to pass more funding for the PPP program right now, but it’s possible Congress will pass a bill providing more funding for the program if it runs out. Small business advocates are pressuring lawmakers to take action, especially because the smallest businesses had trouble accessing PPP funds in the early stages of the program.

“We are finally at a point of some equity for our hardest-to-reach, most underserved businesses,” said Rebecca Shi, executive director of the American Business Immigration Coalition.

Can You Apply if You’ve Filed for Bankruptcy?

Since the advent of the PPP program, some business owners have been excluded, including those who have filed for bankruptcy in the past. However, after the journalism organization ProPublica reported on the impact of the exclusion for small business owners, the SBA reversed course to allow those who have filed for bankruptcy in the past and are working their way out of it to apply.

Although they didn’t make a public announcement, they did change the frequently asked questions page for the program on April 6th, redefining what it means to be “presently involved in any bankruptcy.”

Under the new interpretation, debtors who filed under Chapter 11, 12 and 13 — which cover businesses, family farms and individual consumers, respectively — are eligible for PPP loans once a judge has approved their reorganization plan (which usually happens upon filing).  A spokesperson for the SBA said the explanation had been added for “clarity.”

We have a guide to Chapter 11 bankruptcy available, and you can also apply for the PPP with our partner lenders Bluevine and Funding Circle, even if you’ve filed for bankruptcy in the past.

Can You Apply with More than One Lender?

Applicants are allowed to submit applications for the PPP with more than one lender, and we encourage business owners to do so if they haven’t heard back from one lender after applying.

Occasionally,  applications through multiple lenders get flagged in the SBA’s system and take a little longer to process, but there’s no reason you will be denied for submitting applications with more than one lender. If you’ve already applied with a lender and haven’t heard back after days or even weeks, try submitting with another lender who might approve your application faster.

Can You Apply for Two Draws in the Same Round?

Most people don’t realize that you can actually apply for the PPP a second time in the same round, even if you haven’t spent all of your first PPP loan, but it's allowed under the SBA's guidelines.

The SBA has no specific rule against applying for two draws of funding in the same round, although some lenders won’t take these applications. We have a guide to applying for a second draw in the same round as your first, with all the information you need to give you the best chance of getting funding.

More Funding Information

The PPP isn't the only available funding opportunity for small businesses right now. Here are some other funding options for your business:

📌 The SBA is now accepting requests for increased EIDL loans of up to $500,000. We released a brand new tracker yesterday for you to see how much you could receive and see progress around the U.S.

📌  We have dozens of grants and loans available in our curated database for Grants Premium users. Join nearly 100,000 others getting early access to grants and other funding opportunities.