In the words of one business owner: "Why would I want to go into any type of expansion?"
The latest loans have moved more slowly than the previous round, due in part to additional compliance checks to prevent fraud.
Smaller businesses owned by women and people of color often lack the banking relationships that larger companies have.
Biden has pledged to provide additional resources for small businesses. Business owners say the type of aid matters.
The central bank dropped the minimum loan amount under its Main Street Lending Program to $100,000. But not many businesses feel confident taking out loans they'll have to repay in five years.
Laurie Stewart, CEO of Seattle-based Sound Community Bank, says the bank has made more than 700 loans through the program.
For eight hours, only smaller banks were able to process applications.
As Congress weighs a new round of funding, data reveal that the upper Midwest and Great Plains regions benefited the most from the first round of PPP funding.
There's concern that the hardest hit businesses aren't getting enough help.