Minnesota small businesses wasted little time in applying for the new federal Paycheck Protection Program (PPP) loans. As of Monday, April 13, more than 33,800 loans of approximately $7.6 billion had been approved in the state, according to the Minnesota District Office of the U.S. Small Business Administration.
According to the local SBA office: “Out of the 50 states and U.S. territories, Minnesota ranks eighth in total loan dollars and ninth in number of loans.”
But on Thursday morning, the SBA’s Minnesota District Office could not yet provide a list of the top PPP lenders in the state.
The program was designed to help companies keep workers employed during the economic crisis set in motion by Covid-19. The loans can be used for payroll, rent, mortgage interest, or utilities. The SBA will forgive the loans for companies that retain their employees.
The $2 trillion federal economic rescue package approved in late March included $349 billion in PPP loans administered by the SBA. Lenders began processing the loans on April 3. The program was originally slated to be available until June 30.
But by Thursday morning, the U.S. Small Business Administration said that it had no more PPP money to lend. The SBA posted the below statement on its web site:
Lapse in Appropriations Notice: SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.
EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
At this point, it’s not clear if Congress will approve more funding to extend the PPP loans.