The president signed a $484 billion coronavirus relief bill that will replenish the funds available to small businesses through the Paycheck Protection Program (“PPP”). The SBA announced that new loan applications will be accepted starting at 10:30 AM on Monday, April 27.
The bill appropriates $321 billion in new funds to the PPP under the same terms that were established when the bill passed and further clarified through subsequent releases by the Small Business Administration (“SBA”).
Beyond replenishing the funds available to small businesses through PPP, the bill includes several other notable additions:
- $60 billion, in total, designated to pass through small lenders administering PPP loans, including Insured Depository Institutions and Credit Unions with between $10 billion and $50 billion in assets (receiving $30 billion), as well as those with less than $10 billion in assets (also to receive $30 billion);
- $50 billion for the Disaster Loans Program;
- $10 billion for Emergency Economic Injury Disaster (EIDL) grants (increasing the authorization level from $10 billion to $20 billion);
- Agricultural enterprises under section 18(b) of the Small Business Act (15 U.S. C. 647(b) with 500 or fewer employees will be eligible to receive EIDL grants and loans;
- An additional $75 billion for hospitals and healthcare providers to cover expenses related to the coronavirus and associated lost revenues; and
- $25 billion for expanding COVID-19 testing.
If you have any questions about your application for a loan under PPP, or qualifying for loan forgiveness, contact a Friedman advisor.