President Donald Trump today signed a $484 billion coronavirus relief package, the latest effort by the federal government to help businesses devastated by the pandemic. The Paycheck Protection Program and Health Care Enhancement Act, which was approved by the Senate earlier this week and overwhelmingly passed by the House yesterday afternoon, will inject $310 billion back into the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).
The latest relief comes less than a month after the CARES Act allocated $349 billion to the PPP, a federal forgivable loan program created to help small businesses keep workers employed during the coronavirus crisis. The Trump administration and lawmakers have been under pressure to replenish the program after it quickly ran out of funds and was forced to shut down last week.
About $60 billion of the new PPP funding has been specifically earmarked for community lenders, smaller banks and credit unions to help smaller businesses that don’t have established relationships with big banks, and had a harder time obtaining loans in the first round.
The new package also includes $60 billion more for the Economic Injury Disaster Loan (EIDL) program, a separate SBA program offering economic relief, $25 billion for expanded coronavirus testing, and $75 billion for hospitals.
The SBA says that it has already approved over 1.66 million PPP loans, and nearly 27,000 EIDL loans and over 750,000 EIDL advances. As with the first round, these new funds are expected to run out quickly. Therefore, businesses that wish to take advantage of the PPP or EIDL programs, should act immediately. Borrowers may use this tool to find a nearby SBA lender.
Source: Lancer Insurance Company | Click HERE to view Lancer’s video “Applying for the Paycheck Protection Program”
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