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On last day for small businesses to apply for PPP, $134B remains in emergency relief fund

At the end of the day Tuesday, small business owners will be locked out of approximately $134 billion in Paycheck Protection Program funds

7/1/2020 4:18:00 AM

In a surprise move late Tuesday, the Senate unanimously agreed to extend PPP through Aug. 8. The extension still needs to be approved by the House.

At the end of the day Tuesday, small business owners will be locked out of approximately $134 billion in Paycheck Protection Program funds

Alexi Rosenfeld/Getty Images, FILEAt the end of the day Tuesday, small business owners will be locked out of approximately $134 billion in Paycheck Protection Program (PPP) funds and despite the midnight deadline to apply for a forgivable loan through the program.

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It didn’t appear Congress was going to do anything to ensure the funds will remain available, but in a surprise move late Tuesday, the Senate unanimously agreed to extend PPP through Aug. 8. The extension still needs to be approved by the House.The PPP is a cornerstone effort of the government's emergency

economic relief plan. Nearly 4.8 million loans have been granted to small businesses faced with shutdowns due to the pandemic, totaling more than $518 billion, according to the Small Business Administration. The loans are forgivable if businesses meet a few guidelines, including using 60% of the loan to keep employees on payroll.

MORE: US sent $1.4B in virus relief payments to dead people: ReportBut Congress has allocated an additional $134 billion for the program that businesses have not been able to access, for a variety of reasons.In order for businesses to be able to apply for that money in the coming weeks, Congress would need to pass legislation to either extend the deadline for the program, or create the next phase of the program. It seems unlikely that either effort will succeed Tuesday, to ensure the funds are continuously available, and it's also unclear if either effort will succeed before a two-week congressional recess for the July 4th holiday kicks off.

“Chairman Rubio has reconvened the bipartisan small business task force to work towards an agreement on the next phase of support for small businesses. The bipartisan task force is currently working towards consensus on a final agreement on a deal,” Senate Small Business Committee Chairman Marco Rubio's office said in a statement to ABC News Monday.

Senate Small Business and Entrepreneurship Committee Chariman Marco Rubio listens during a hearing on June 10, 2020 in Washington, D.C.Senate Small Business and Entrepreneurship Committee Chariman Marco Rubio listens during a hearing on June 10, 2020 in Washington, D.C.

Al Drago/Pool via Getty Images, FILESen. Ben Cardin, D-Md., the ranking member on that committee, has proposed legislation that would allow the smallest of small businesses to obtain a second round of PPP funding, and extend the application deadline through December, or whenever Small Business Administrator Jovita Carranza sees fit. The idea is to target the businesses that still need help: minority-owned businesses, businesses with fewer than 100 employees and industries like hospitality and retail that have yet to recover since receiving the initial round of PPP loans.

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Treasury Secretary Steven Mnuchin testified Tuesday that there’s bipartisan support to extend PPP and target it to the most hard-hit businesses. He said expects legislation by the end of July, which means there will be a lapse in the program from July 1 until it is passed.

“I think that there's, there appears to be bipartisan support in the Senate to repurpose the $130 billion for PPP, extending it to businesses that are most hard hit, that have a requirement that their revenues have dropped significantly -- things like restaurants and hotels and others, where it is critical to get people back to work,” Mnuchin said.

“I've already had conversations with the SBA committee in the Senate about repurposing that hundred $135 billion and think that should be done, and look forward to working with both the House and the Senate so that we can pass legislation by the end of July,” he said.

President Donald Trump is flanked by Small Business Administration Administrator Jovita Carranza, left, and Treasury Secretary Steven Mnuchin during a press briefing about the Paycheck Protection Program in the East Room of the White House, April 28, 2020.

President Donald Trump is flanked by Small Business Administration Administrator Jovita Carranza, left, and Treasury Secretary Steven Mnuchin during a press briefing about the Paycheck Protection Program in the East Room of the White House, April 28, 2020.

Mandel Ngan/AFP via Getty Images, FILEThe fact that billions are still available does not necessarily indicate small businesses have no need for it. For many small businesses, especiallythose run by sole proprietors or in economically disadvantaged areas

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, which may not have access to accounting professionals or experience obtaining loans, the process to receive PPP funding was, and continues to be, daunting. Other small businesses were hesitant to apply for the loans as forgiveness guidelines shifted multiple times, and the prolonged pandemic meant many businesses felt they could not meet the 60% payroll threshold.

MORE: For minority-owned businesses shut out of coronavirus loans, an ongoing push for accessTune into ABC at 1 p.m. ET and ABC News Live at 4 p.m. ET every weekday for special coverage of the novel coronavirus with the full ABC News team, including the latest news, context and analysis.

Though need still exists for the money, it does not simply get re-absorbed or rolled over for any other SBA programs, according to the agency. Congress must decide how to re-appropriate it."Congress and the Administration will consider proposals of how to use the remaining funds. The dollars appropriated for the PPP do NOT get rolled over to regular SBA 7(a) loan funding (SBA's loan program that existed before COVID) or any other SBA program," a regional spokesperson for the SBA told ABC News.

ABC News' Trish Turner contributed to this report.What to know about coronavirus: Read more: ABC News »

Omg noo! Well, that's just peachy, for the businesses that qualify, or aren't scared to become beholden to the government. 🤨 When is house vote? What’s that, like one extra week? The Senate Republicans need to find a pair of balls, strap them on, and do some real work on Covid-19, like getting the Idiot in Chief out of the way!

The $$ has been stagnant for months. How about we help the businesses who rushed to spend it all with the original rules? Not long enough Flex

Today Is The Last Day To Apply For A PPP LoanWhat’s next for small businesses, and why is there still $134 billion left in the pot? Can Kenyans Apply Nigerians follow?

The PPP Loan Deadline Is Tomorrow, With $130 Billion Still UnspentWith the PPP loan deadline tomorrow, and a plan for the remaining funds unclear, restaurant owners are left wondering what will become of the money that hasn’t been distributed They should ask their Mayor and Governor why they were ordered to shut their businesses down without guarantees in place. And if they don't like the answer, vote accordingly.

PPP Loan Window Is Closing, With $134 Billion Still on OfferThe application window for Paycheck Protection Program loans closes Tuesday, triggering a new debate over what to do with the remaining funds, as fears mount that the fallout from Covid-19 is far from over. How about returning it to the federal reserve where it came from? We no longer have to tax individuals nor attack the rich. Govt has responsibility to tax wealth centers instead consumer sales stock trading to jnsure adequate healthcare wealth transfer to working Americans its all in the MATH Use the money for the rent/ mortgage problem!

PPP loans are ending. Here's where small businesses can turn nowThe Paycheck Protection Program will stop approving new applications after June 30. Other relief options may be limited for struggling businesses.

The PPP Loan Application Deadline Is Today. Use This Tool To Find A LenderToday is the last day to apply for a Paycheck Protection Program loan. The Small Business Administration earlier this month reinstated its Lender Match program, which connects small businesses affected by the COVID-19 pandemic with lenders.

House passes bill to prevent homelessness crisis 'like we've never seen in our lifetimes'The Emergency Housing Protections and Relief Act of 2020 allocates $100 billion to emergency rental assistance programs and creates a $75 billion relief fund for homeowners. MakeIt You mean like the one california has been facing for years now and done nothing about it? MakeIt Would HillaryClinton have done a better job handling the Coronavirus Pandemic ? ... Let's settle this MakeIt I can’t wait for President Trump to sign this. I actually think President Trump has something much bigger in mind..