SBA, PPP and EIDL Small Business Loan Programs Update – Additional Funding Approved

To Our Business Colleagues, Clients and Friends:

Since being signed into law on March 27, 2020, the federal CARES (the Coronavirus Aid, Relief and Economic Security Act) established a comprehensive COVID-19 related financial support package for individuals and small businesses (those businesses with up to 500 employees). The primary SBA COVID-19 related support programs are the SBA PPP (Paycheck Protection Program) and the SBA EIDL (Economic Injury Disaster Loan program). The CARES Act provided for an initial round of funding of $349 billion for the PPP and $10 billion for the EIDL program. Unfortunately, the initial funding for both programs was exhausted in 2 weeks. Many small business owners have reached out to us concerned that they lost the ability to participate in these programs. However, we are happy to report that, last night, the House passed H.R. 266, The Paycheck Protection Program and Healthcare Enhancement Act. President Trump signed this new bill this morning. It provides for additional PPP funding of $310 billion and additional EIDL program funding of $60 billion ($50 billion for disaster loans including EIDL loans and $10 billion for grants). As many applications were “in the pipeline” when the initial funding for these programs was exhausted, it is expected many of those pending applications will be processed first, and it is therefore imperative if you have not applied for these programs that you move quickly if you want to take advantage of these SBA COVID-19 related loan programs. We can help. For more information, please click here to contact us and speak with one of our attorneys.

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