The Paycheck Protection Program is still accepting applications and still has plenty of money to distribute. But new data released by the Small Business Administration show that, since the middle of May, the net weekly PPP lending has been negative.
Applications have slowed down dramatically while many businesses that have received PPP loans returned the funds. Amid confusion around the question of loan forgiveness, business owners the country over have become hesitant to even use the funds that they’ve already received through the PPP, scared that they may be obligated to pay the funds back.
Instead of making use of Paycheck Protection Program funds many businesses are simply laying off their employees, adding to the unprecedented unemployment claims rates.
A vote to make PPP rules more flexible is still set to take place in the House of Representatives. The date of that vote has not been officially announced.