Small Business Loan Program Ran Out of Money While Ruth’s Chris Got $20 Million
The Small Business Association has announced that the $349 billion lending program has hit its limit, with thousands of small businesses still left stranded after they did not get a cut of the loan. Business owners are now waiting for Congress and Trump to approve another $250 billion for the program. Lawmakers are postponing approving the new program over consideration for the program continuing as it is now or adding additional provisions to help minority businesses.
This news came after decidedly not small businesses such as Ruth’s Chris and Potbelly Sandwich Shop were awarded $20 million and $10 million respectively. The wording of the bill called for small businesses with less than 500 employees, but was expanded to allow restaurants that employed less than 500 employees at any given location, effectively allowing any nationwide chain to qualify for the small business loan as well.
In Colorado, SBA said 28,469 PPP loans have been approved for qualifying recipients.
“I’m hopeful in the near future we can continue processing those loans to provide the critical support necessary to the many small businesses still in need of assistance. In the meantime, business owners should remain in contact with their lender and make sure they have the documentation necessary to complete the PPP application in the event congress appropriates additional funding to continue the program,” the SBA regional Administrator said.