Round 2 for PPP and EIDL FundingApril 29, 2020
On Monday, the U.S. Small Business Administration (SBA) and the nation’s banks reopened the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs after Congress reallocated additional funds to help small business.
The legislation was signed by President Trump on Friday, April 24 and includes $321 billion for the depleted Paycheck Protection Program (PPP), of which $60 billion is set aside for underbanked businesses, a priority for Democrats. The small business lending program, created by last month’s $2 trillion economic rescue package—the CARES Act (H.R. 748)—quickly exhausted its $349 billion funding amidst a surge of applications. Some banks have already warned that the new infusion of funds could once again evaporate within days.
Congress appropriated an additional $50 billion for the Disaster Loans Program Account and $10 billion for Emergency Economic Injury Disaster grants, which are both housed by the Small Business Administration (SBA), while increasing the authorization level for the emergency economic grants from $10 billion to $20 billion. SBA would also receive more than $2 billion to cover salaries and expenses for federal employees.
To address the issue of larger businesses receiving PPP loans, Treasury and SBA announced that all publicly-traded companies as well any loans in excess of $2 million will be more thoroughly reviewed. Forthcoming guidance is expected tomorrow, April 30, but you can access the unofficial guidance here.
Additionally, SBA has provided an updated FAQ on the PPP loan program to reflect the new changes to the program here.
If you applied under the second round of funding for PPP or EIDL, please share your experience with NSBA here.