The U.S. Small Business Administration (SBA) resumed accepting Paycheck Protection Program (PPP) applications from participating lenders on Monday, April 27, following passage of the latest COVID-19 relief package on April 24. With the additional funding injection, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first-come, first-served basis. The small business loan programs authorized under the CARES Act had been quickly depleted after only two weeks of operation.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities. You must apply through a lender. View a list of lenders participating in the PPP by state as of April 23. If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender.
The Economic Injury Disaster Loan is an established program that helps small businesses and non-profits overcome the loss of revenue during a declared disaster such as a hurricane, major fire, or, in this case, the COVID-19 pandemic. This loan includes a $10,000 advance (if you apply). Apply online when EIDL becomes available again.
>> Click here to learn more about available SBA loan and debt relief options.
The latest COVID-19 relief bill, known as the “Paycheck Protection Program and Health Care Enhancement Act” (COVID 3.5) provides $484 billion in additional funding to replenish and supplement key programs under the CARES Act, including the Paycheck Protection Program (PPP), small business disaster loans and grants, hospitals and health care providers, and testing.
Paycheck Protection Program (PPP): Appropriates an additional $321 billion in funding, with $60 billion set aside for small, midsize and community lenders (including minority lenders).
Disaster Loans Program: Appropriates an additional $50 billion for the Disaster Loans Program and an additional $10 billion for Emergency Economic Injury Disaster Loan (EIDL) Grants.
HHS Hospital and Provider Grants under the Public Health and Social Services Emergency Fund: Provides an additional $75 billion to support the need for COVID-19-related expenses and lost revenue due to coronavirus.
Testing: Provides $25 billion for the HHS Public Health and Social Services Emergency Fund for necessary expenses to research, develop, validate, manufacture, purchase, administer and expand capacity for COVID-19 tests. Requires the Administration to create a national strategy to provide assistance to states for testing and increasing testing capacity.
More details can be found on the AMA’s website here.