With the Senate passing $380B in new funding for the federal SBA’s small business relief program on Tuesday, the House of Representatives is expected to overwhelmingly approve this new money for the program on Thursday, April 23.
On Tuesday, the United States Senate authorized $380 billion in new funding for the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), as well as $75 billion for hospitals and $25 billion to increase US coronavirus testing capacity. The bill will be taken up by the House of Representatives on Thursday where it is expected to pass with overwhelming support and be signed into law by the President shortly thereafter.
All told, this is a significant win for businesses still very much reeling from the impact of the coronavirus and its related shutdowns of businesses across the country. However, the money is expected to be distributed quickly, as the first round of money was distributed in less than a week leaving many businesses still seeking financial assistance.
The initial round of PPP was included as part of the federal CARES Act signed into law on March 27, 2020. The PPP provides nonrecourse loans to employers, self-employed individuals, charitable organizations, and tribal businesses for up to 10 years to fund payroll, rent, mortgage, and utility costs. So long as a PPP loan is only used to fund these costs, borrowers are eligible to apply for loan forgiveness through their issuing bank. A primer on the PPP can be found here. Additional questions and answers about the program can be found here and the application for the PPP can be found here. Please contact me if you have any additional questions or need assistance with anything.