Federal Government to Pass Second Round of Funding
On April 21, the U.S. Senate passed a $484 billion relief package to support small businesses, hospitals, and expand coronavirus testing. This new relief package comes in response to the $2.2 trillion small business stimulus package that, as we all know, quickly ran out of funding. With the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), the SBA processed more than 14 years’ worth of loans in less than 14 days.
If passed, the new relief package would provide $310 billion for the SBA PPP loan program, with $60 billion set aside for small lending institutions. Plus, the package would add $60 billion for the SBA EIDL ($50 billion in loans and $10 billion in grants). Farms and other agriculture enterprises would also be eligible for this new relief package.
The House could approve the new relief package bill as early as Thursday, April 23.
Based on our collective experience with the SBA, we highly recommend that you prepare to apply as soon as possible for funding if this new relief package passes.
- If you have already applied for PPP funding, contact the bank that you applied with to see if they still have your application and if they will submit it if the SBA receives more funding from Congress and begins accepting new applications.
- If you have not yet submitted your PPP loan application, prepare your documents, and get your application ready. Contact your bank and be prepared to apply as soon as the SBA announces there are funds available for new PPP loans. Click here for a sample PPP application and click here to be taken to the SBA website for a list of SBA lending institutes. Mountain BizWorks is actively processing applications now to be ready to submit when the PPP reopens.
- If you have not submitted an EIDL application, be prepared to apply as quickly as possible. The EIDL loans are available on the SBA website. Click here to be taken to the EIDL application.
To learn more about the SBA loan options, including PPP and EIDL, please click here to visit the SBA website.