What happens when PPP funds run out?

The SBA is the government agency responsible for distributing PPP loans. PPP loans that have already been approved will still be honored, of course. And if your small business submitted a PPP loan application as recently as the first few days of May before the money ran out, that loan may still be approved.

What if PPP money runs out before 24 weeks?

There was nothing in the law that said business owners could elect a shorter forgiveness period (say, 12 weeks) if they ran out of funds before 24 weeks. In other words, the forgiveness amount will be reduced as if the salary reduction were in effect for the remainder of the covered period.

Is the PPP loan going to be extended again?

The Federal Reserve Board on Friday announced it will extend for a final time its Paycheck Protection Program Liquidity Facility, or PPPLF, by an additional month to July 30, 2021. The PPPLF extends term credit to financial institutions making PPP loans, accepting the PPP loans as collateral.

How many rounds of PPP have there been?

three rounds
The table below outlines all three rounds of PPP loan funding.

Are PPP funds exhausted?

On May 4, 2021, the U.S. Small Business Administration (SBA) announced it has officially exhausted Paycheck Protection Program (PPP) funds for most lenders. There is $8 billion in remaining funds available for new PPP applications through CFIs as part of a congressionally-mandated set aside.

How long do you have to spend PPP money?

The eight-week period to use your PPP funds was extended to 24 weeks. Previously, you had to spend at least 75\% of the funds on payroll. You now need to spend only 60\% of the funds on payroll.

Should I use 8 week or 24 week PPP?

The answer to the question is straightforward – use the longer 24 week period if it would benefit you. The intention of creating a longer period was to help ensure that businesses would be able to have their full PPP loans forgiven.