Companies seeking relief funding through the Small Business Administration's new loan program will receive their loans within the next week or so, Treasury Secretary Steven Mnuchin said Wednesday.
Lenders began processing loan applications for the Paycheck Protection Program on Friday, April 3. The $349 billion program within the $2.2 trillion stimulus package provides forgivable loans to small businesses that keep their workers on payroll. The forgivable loans are a top priority for dealers trying to keep their businesses afloat as showrooms are ordered to close throughout the United States because of the coronavirus pandemic.
More than 17,500 loans valued at $5.4 billion were approved on the first day, according to Jovita Carranza, administrator for the small-business agency.
President Donald Trump said the Small Business Administration has processed more than $70 billion in guaranteed loans as of Tuesday, April 7. The White House has asked Congress to pass legislation to fund an additional $250 billion for the program.
"We have 3,500 lenders up on the system, with many more getting signed up every day," Mnuchin told CNBC during an interview Wednesday.
"I want to assure all small businesses out there: We will not run out of money. The president has asked us to go back to Congress. We hope they pass this tomorrow and Friday," he said. "And we want to assure everybody if you don't get a loan this week, you'll get a loan next week or the following week. The money will be there."
Messages seeking comment were left with the Small Business Administration and the Department of the Treasury.
