Consultant’s Corner: Additional Funding for the Paycheck Protection Program
Q: How much additional funding was approved for SBA loan programs providing financial assistance in response to the Coronavirus (COVID-19) outbreak?
In our previous blog post, we discussed the status of the congressional debate surrounding additional funding for the Paycheck Protection Program.
After approval by both the Senate and the House of Representatives, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) on Friday, April 24, 2020.
The Paycheck Protection Program and Health Care Enhancement Act appropriates an additional $310 billion for the PPP and an additional $60 billion for the Economic Injury Disaster Loan program.
Of the additional $310 billion appropriated for the PPP, $60 billion is allocated for community-based lenders, smaller banks and credit unions to assist smaller businesses.
Of the additional $60 billion appropriated for the EIDL program, $10 billion is allocated for Emergency EIDL grants.
You can review the details of the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) using the government resource provided below.
Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) – Congress.gov
As of April 23, 2020, the SBA released an updated PPP FAQ’s document for both borrowers and lenders. To review the most recent PPP FAQ document, please follow the link provided below.
PPP FAQ’s for Borrowers and Lenders – SBA
If you are seeking a PPP loan, and have not done so already, you should immediately begin researching and contacting local SBA approved lenders and prepare your business’s 2019 tax return to ensure you have the best opportunity to successfully submit a PPP loan application. The following SBA resource can be utilized to identify local lenders.