U.S. President Donald Trump on Friday signed a $484 billion coronavirus relief bill into law to expand loans for small businesses reeling from the outbreak, as his Treasury secretary promised surveillance to stop bigger companies from accessing the funds.
Included in the bill is $310 billion to replenish the Paycheck Protection Program (PPP). We are hosting our 10th webinar Tuesday April 28th to review the updates to the program, discuss forgiveness calculations, share client PPP stories and to answer your PPP Questions. We will also provide a brief overview of the upcoming Main Street Lending Program. Registration is limited to 300 participants and will likely reach capacity. Please register at the below link as soon as possible:
- $60 billion of the $310 for PPP referenced above is reserved for community banks and small lenders;
- $75 billion for reimbursements to hospitals and health care providers to support the need for coronavirus-related expenses and lost revenue;
- $25 billion to support testing efforts;
- $60 billion in small business funds not included in the PPP program will go to the SBA’s Economic Injury Disaster Loan (EIDL) program and related small business grants. EIDL provides working capital loans of up to $2 million that small businesses may use to pay fixed debts, payroll, accounts payable, and other bills that cannot be paid because of COVID-19. The interest rate is 3.75% for small businesses and 2.75% for not-for-profits.
Additionally, the SBA added an answer to their FAQ page to address the eligibility of large companies with adequate sources of liquidity. Question # 31 provides guidance to that end and can be viewed HERE .
The FAQs are updated with new guidance often. In a previous post, we recommended bookmarking the page and checking for updates. We expect and hope to have clear and final guidance by the end of the month, as indicated by the SBA with the first interim rule.