More Funding for Paycheck Protection Program
Later today, President Trump will sign a bill that, in part, replenishes funding for the very popular Paycheck Protection Program (PPP). This is the program that small businesses access via a Small Business Administration (SBA) loan, through a local lending institution. An additional $310 billion is set aside specifically for this program.
The PPP is one component of the Coronavirus Aid, Relief and Economic Securities (CARES) Act, and provides small businesses with forgivable loans to cover payroll and certain other expenses.
Of that $310 billion in new funding, $60 billion is specifically intended for small and medium-sized lenders, to focus on the smallest of businesses.
Also included in the new bill:
- $60 billion to replenish Small Business Association (SBA) emergency disaster loans, such as the popular EIDL program
- $75 billion for hospitals, to assist in offsetting the cost of treating COVID-19 patients and lost revenue from delaying other health care procedures
- $25 billion to accelerate COVID-19 testing
If you haven’t yet applied for a PPP loan, but would like to get in on this round of funding, we strongly recommend that you immediately take action. Prior to the current crisis, only 1,500 lending institutions processed SBA loans; now, 4,000 lending institutions offer this service. And, with the lenders having several weeks’ experience with the program, it’s reasonable to think the process will go smoother and faster. Don’t delay; contact your lending institution about applying for the Paycheck Protection Program.