By Patrick O'Brien, JD, legal coordinator, American Med Spa Association

It is being reported that the Paycheck Protection Program (PPP) has exhausted its entire funding allocation. The PPP was created by the Coronavirus Aid, Relief and Economic Security (CARES) Act and funded with $349 billion. The PPP was extremely popular for small businesses harmed by the COVID-19 shut down, as the loans could be forgiven if spent on certain business expenses (see here for more info). Recently, there have been discussions in Congress about adding additional funding between $125 and $250 billion, but currently no agreement has been reached.

Additionally, the Small Business Administration (SBA) announced last night (see here) that it will no longer be accepting applications for the Economic Injury Disaster Loan (EIDL) program. Based on the applications it has already received, it has exhausted its current funding levels. If you have already submitted an application, it will still be processed. However, funds will be allocated on a first-come, first-serve basis, so there is no guarantee of getting the loan. Previously, the SBA had announced that the $10,000 grant that came with the EIDL loans would instead be given at the rate of $1,000 per employee, up to $10,000.