SBA: Thousands of Alaskan businesses secured federal loans before funding dried up
Before program funding dried up on April 16, close to 5,000 Alaskan businesses were approved for nearly $922 million in federal loans to help continue paying their employees through the COVID-19 pandemic, according to the Small Business Administration (SBA).
The Paycheck Protection Program (PPP) allotted over $349 billion dollars to support American businesses and help retain employees. Applications began pouring in shortly after the United States Congress passed the measure in late March.
According to the SBA website, PPP applications that were approved and accepted will be “on the way within ten days of that acceptance.” Business owners should have already received notification of approval from their local lenders. If they haven’t received this notification, this likely means their applications were not accepted before funding for PPP loans dried up, officials said.
“We are hopeful that Congress will provide additional funding for PPP loans in the near future, but we cannot guarantee this,” the SBA website says. The statement goes on to say loan applications which were not approved in time will likely not be finalized until Congress approves more money for the PPP program.
During a Thursday evening teleconference, U.S. Sens. Lisa Murkowski, R-Alaska, and Dan Sullivan, R-Alaska, did not provide a timeline for when PPP funding might be restored. They both acknowledged restoring funding for the program is a priority.
The SBA is asking businesses to contact their delegates and urge them to restore funding. They have started an
which urges Congress to increase the PPP fund size to $850 billion.
The SBA has not responded to a media request into how many applications from Alaskan businesses are pending approval.
The SBA has also issued notice that it will not accept new applications for the Economic Injury Disaster Loan (EIDL), which advances up to $10,000 for struggling businesses, pending Congressional funding. Those who have already submitted EIDL applications "will continue to be processed on a first-come, first-served basis" according to the SBA.
For more information on the status of your application, and to find alternative resources, visit the