The CARES Act provided $349 billion of funding for the PPP when it was enacted on March 27, 2020.
If you did not obtain a Paycheck Protection Program (PPP) loan during the first round, prepare your application now and submit it to your favorite SBA lender as soon as possible, preferably over this weekend. The SBA will resume accepting applications on Monday at 10:30 AM, Eastern Standard Time.
Given that funding in the first round was exhausted within 13 days, there remains a tremendous backlog of applications from the first round, and knowledge of the PPP and its rules is now widespread, we expect the second round of funding to be exhausted much sooner than 13 days. If I had to speculate based solely on the level of demand and the backlog I have seen, I would say the second round is likely to be exhausted with the applications already in the pipeline and those submitted by the end of day Monday. But this is pure speculation on my part and there is no harm submitting your application even if you can’t get it in by Monday.
If you already applied with a lender, there is no need to resubmit your application because Treasury and the SBA have encouraged all approved lenders to process these loans.
The only borrowers that should not rush to file their applications for PPP loans are those borrowers that (i) have access to adequate sources of liquidity (either directly or from their parent entities) to support the ongoing operations of their business in a manner that is not significantly detrimental to their business, or (ii) are public companies with substantial market value and access to capital markets. This is because of the now-famous frequently asked question (FAQ) #31 that was issued by the SBA on April 23, 2020. That FAQ is written so broadly that it creates a zone of uncertainty that we believe was intended to discourage from applying all but the neediest small- and mid-size businesses.