Additional Funding for Paycheck Protection Program and EIDL
Houston — April 24, 2020 Today, President Trump signed into law an approximately $484 billion interim coronavirus relief package that authorizes an additional $310 billion to replenish funds for the Paycheck Protection Program. Of the $310 billion, $60 billion is set aside specifically for smaller lending institutions such as credit unions and community banks. According to the text of the bill, $30 billion will be dedicated to institutions with between $10 billion and $50 billion in assets, and the other $30 billion to institutions with less than $10 billion in assets.
Due to high demand, the Paycheck Protection Program ran out of its initial $349 billion funding in approximately 14 days. As such, we encourage any eligible borrowers who have not yet been approved for the Paycheck Protection Program or have not yet applied for the program to contact their lender as soon as possible. The Small Business Administration has made a list of participating lenders available here.
Since our last update, the Small Business Administration and the U.S. Department of Treasury have released additional guidance with important direction to self-employed individuals and publicly traded companies applying for the Paycheck Protection Program. The text of the guidance is available here and here.
The interim relief package also adds an additional $60 billion of funding to the Economic Injury Disaster Loan (EIDL) program. Of the $60 billion, $50 billion is allocated to the EIDL program and $10 billion is allocated to the associated EIDL emergency advance. At this time, it is unclear whether the Small Business Administration will be taking new applications for the EIDL program.
For additional questions about these programs, please contact Patrick Hayes or Mahek Bhojani.
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