The Paycheck Protection Program Helping Small Businesses Run Out of Funds

Throughout one year of operation, the program served more than eight million small businesses, the funds for the Program Protection of Paychecks was approved in Congress

Photo: OLIVIER DOULIERY / AFP / Getty Images

If you are a small business owner and you had planned to request a benefit from the Paycheck Protection Program, it will no longer be possible since this federal program has run out of funds.

This aid program floated many small businesses during the coronavirus pandemic, but with resources depleted, New requests will no longer proceed .

According to a spokesperson for the Small Business Administration, the funds that remain will attend to the overdue applications, but at the end of the Paycheck Protection program, it will not be able to continue with its work.

Over a year of operation the program served more than eight million small businesses , funding for the Paycheck Protection Program was approved in Congress.

Although revenues have been exhausted, Congress voted a 2nd extension of the program of 31 March to 31 May, but did not allocate additional funds , although most expected the money to run out before the new deadline.

One of the reasons, unspoken, by legislators to increase the budget of the program, had to do with the increase in vaccinated people, the elimination of commercial restrictions and the economic reactivation.

This leaves many small entrepreneurs who required the help that granted by the Small Business Administration in order to face, still, the economic adversity that the pandemic represents .

So far, it is unknown if the Small Business Administration will ask Congress to authorize more funding to reactivate the Protection program of Pay Checks or if will seek other measures to help those affected .