Paycheck Protection Program Update — $310 Billion Added
As of May 18, 2020, the PPP Loan Forgiveness Application is now available on the SBA site. Apply here.
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the government made $349 billion available to small businesses for emergency funding. Signed into law on Friday, March 27 the Paycheck Protection Program (PPP) quickly ran out of money.
In an effort to provide relief to businesses that did not receive any of the initial funding, the newest iteration of the Paycheck Protection Program and Health Care Enhancement Act was signed into law on Friday, April 24. The stimulus bill increases the amount of funds available for the Paycheck Protection Program by $310 billion dollars.
Of the additional $310 billion of funds, $60 billion has been set aside for loans to be distributed through smaller banks and credit unions. The Act also doubled the Emergency Economic Injury Disaster (EIDL) Grants available from $10 billion to $20 billion to aid hospitals and healthcare providers.
The need for small business financial relief is at an all-time high and refreshed funding is not expected to last through the end of the week. Business owners may find better options with local banks and credit unions applications than those from big banks. If your original PPP loan was denied, call your bank today and ask what if your funding request will be re-reviewed.
While other lending options still exist, the loan forgiveness option for the PPP makes it the ideal choice for small financial businesses hit with difficulties due to COVID-19.
View the most up-to-date information in the PPP FAQ from the SBA and the Department of the Treasury, recently updated on May 13, 2020.
Your Aldrich Advisor is here to provide support for you however we can during these rapidly changing times. For more resources to help you navigate the developing impact of coronavirus on your business, visit our COVID-19 Resource Center.
