Home / Articles / SBA’s Paycheck Protection Program Is Back — For Now

SBA’s Paycheck Protection Program Is Back — For Now

April 23, 2020

Faced with overwhelming demand, the US Small Business Administration’s Paycheck Protection Program (PPP)—part of the Coronavirus Aid, Relief and Economic Security (CARES) Act—ran out of its original $350 billion after just two weeks.

Congress is working to replenish the funds, aimed at helping small businesses weather the impacts of the pandemic and keep employees on staff. Before it exhausted its funds, the Small Business Administration (SBA) handed out 1.66 million loans for over $342 billion under the PPP.

On April 21, Senate Minority Leader Chuck Schumer announced the Senate had approved an additional $480 billion in coronavirus-related spending, most of which will be directed toward the PPP.

Under the Senate’s proposal, $310 billion of the new funds will go to the PPP, $75 billion will go to healthcare providers (public entities including Medicare/Medicaid providers, hospitals and other facilitates that care for Covid-19 patients or test for the virus), and $25 billion will be used to facilitate testing for the virus. The PPP provisions specifically allocate $60 billion for smaller lenders, such as community banks and credit unions to provide loans to eligible small businesses.

The bill passed the House on April 23, and President Trump signed the legislation on April 24. The funding is once again expected to go quickly. We will keep you updated, and we’re here to help you apply for government funding or take additional actions as a result of this new legislation. Contact us to learn more.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Guidance

Related

Article

4 Min Read

Are scholarships tax-free or taxable?

Article

2 Min Read

IT Risk Assessment Explainer Video

Article

2 Min Read

A Look at the Michigan Small Business Restart Program

Article

3 Min Read

Take advantage of a “stepped-up basis” when you inherit property

Article

3 Min Read

Main Street Lending Program now open to nonprofit applicants

Article

4 Min Read

Infographic: Furlough vs layoff vs reduction in force?

Get in Touch.

What service are you looking for? We'll match you with an experienced advisor, who will help you find an effective and sustainable solution.