Additional Funding for Federal COVID-19 Loan Programs
Stimulus Package Replenishes PPP and EIDL
April 24, 2020
Today, President Trump enacted the Paycheck Protection Program and Health Care Enhancement, the newest federal stimulus package aimed at providing economic relief to businesses and institutions hit hardest by the ongoing COVID-19 pandemic. The Act provides additional funding for small business loans, health care providers, and coronavirus testing.
In total, the stimulus package includes approximately $484 billion in new coronavirus aid. Of that, $370 billion will be used to replenish the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds as follows:
- PPP Funds – Additional $310 billion (including $60 billion specifically for community lenders and smaller lenders)
- EIDL Funds – Additional $50 billion
- Emergency EIDL Grant Funds – Additional $10 billion
For those businesses, including sole proprietors and independent contractors, that have already applied and received their PPP or EIDL allocations, no action is needed. However, for those who have not yet applied for relief, we encourage you to visit SBA.gov or contact your lender as soon as possible to get the process started. Based on how rapidly the stimulus funds were depleted with the first round of funding, we expect this next round of funding could go quickly.
At HBE, we have a team of professionals who have been designated to research and stay on top of the changes in PPP and EIDL filing requirements and guidance on a daily basis. Our team is happy to help you with gathering information for your loan applications. As your trusted advisor, once your applications have been submitted, we will also be there to help you through both the application progress and the forgiveness phase. Please reach out and let us know how we can help.
This communication and any applicable contents pertaining to COVID-19 employer relief provisions is based on our professional judgment given the facts provided to us and the COVID-19 employer relief provisions guidance as of the date of the communication. Subsequent developments changing the facts provided to us, or differences in the final guidance and regulations once they are issued, may affect the advice provided. These effects may be material.