SAN ANTONIO — The Paycheck Protection Program for small businesses hit its $349 billion spending limit on Thursday.
The highly-popular initiative, which was part of the CARES act passed by Congress last month, allowed for businesses with fewer than 500 employees to apply for 2-year loans at a 1% interest rate. In some cases, the loans can be forgiven.
Business owners began submitting their applications on April 3, and within the first four days, Frost Bank says they received 10,000 applications. By Wednesday morning, Frost Bank CEO Phil Green said they had handled more loan applications than the company normally handles in a year and a half.
“We really looked at as we weren’t processing a loan," Green said. "We were helping potentially save a business with every one of these we were able to do."
The local bank processed 14,000 applications, getting more than 10,600 approved by the Small Business Administration. The loans totaled $3 billion in funds to small business."
“That means we processed 76% of all the applications that came in, and we were able to process and get approval on 90% of the dollars that were applied for,” Green explained.
The necessity for the economic relief programs was highlighted during Thursday's city council meeting, when assistant city manager Carlos Contreras noted the funds had dried up.
“Only the federal government can address this issue," Contreras said when asked by city councilwoman Adriana Rocha Garcia whether there was a back up plan. "It’s so big.”
Councilwoman Rebecca Viagran also noted the popularity of programs, telling her fellow council members that of the $25 million earmarked for small business loans, which was announced by Governor Greg Abbott on Monday, applicants had already requested $68 million in funds. She said of the $5 million in loans set aside for Bexar County businesses in conjunction with the LIFT Fund, business owners have already applied for $40 million in funds.
Green said business owners shouldn't lose hope if they were unable to take advantage of the funds.
“Once that money is reallocated, we believe it will be, we’re prepared and we’re continuing to work on those applications that we were unable to get to," Green said. "And we’ll be prepared to work on new ones."