April 16, 2020
Since Monday, the Small Business Administration (SBA) announced that it had spent an additional $50 billion of its Paycheck Protection Program’s $349 billion lending limit as part of the CARES Act. The program that is attempting to bail out small businesses across the nation announced Wednesday that it has spent a total of over $311 billion on over 1.44 million different loans. The Trump administration has requested an additional $250 billion to help replenish the program’s funds. The Treasury Secretary and SBA Administrator Jovita Carranza released a joint statement saying, “We want every eligible small business to participate and get the resources they need.” The SBA is granting loans for less than $25,000 and up to $5 million to eligible small businesses. According to their website’s eligibility requirements, the businesses must, “Operate for profit, be engaged in or propose to do business in, the U.S. or its territories, have reasonable owner equity to invest, and use alternative financial resources, including personal assets, before seeking financial assistance.” Currently, construction companies have become the predominant entities receiving the loans amounting to $34 billion alone.