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.