President Trump has signed the latest relief bill totaling $484 billion into law. The intent of the bill is to replenish two depleted small business-relief programs, offer additional assistance to hospitals and fund an expansion of testing capacity nationwide.
The bill will add $320 billion in funding to the Paycheck Protection Program created by lawmakers last month to help small businesses cover payroll and other essential expenses with loan forgiveness if the business meets certain criteria, including keeping employees on their payrolls. This round of funding goes a little further than the initial bill and earmarks $30 billion for distribution by small community lenders and another $30 billion by mid-sized lenders. Roughly $60 billion of the bill will be targeted to the Economic Injury Disaster Loans. In addition, $75 billion will go to hospitals and other healthcare providers. It also allocates $25 billion to accelerate testing efforts for COVID-19.
“We encourage small businesses that didn’t receive funding the first time around to reapply as quickly as possible for the updated funds. The SBA will begin taking PPP applications again on Monday,” says Bret Curtis, CPA, JD, LLM. “Just like with the first round of funding, we encourage business owners to collect the appropriate documentation and be ready to submit their applications as soon as possible.”
Curtis adds that if you applied for a PPP loan in the first round, it is a good idea to check back with your banker to make sure they have all of the documentation they need from you and that they’re prepared to submit your application immediately.
This content was created during a snapshot in time and should be relied upon as such. Legislation and guidance continue to change as we progress through the current fluid environment and the information may not be applicable at a later date. All content and materials are for general information purposes only. If you have questions regarding your specific situation, please contact us.