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Additional Funding Expected for Small Business Loan Programs
By Gardi, Haught, Fischer & Bhosale LTD
April 22, 2020
Additional Funding Expected for Small Business Loan Programs
By: Taylor Lemick
By the end of this week, small businesses can expect President Trump to sign a bill into law that includes provisions for an additional $484 billion relief package. The draft of the Bill allocates the funds to small business loan programs, as well as additional funding for hospitals and testing.
Last week, the Paycheck Protection Program ran out of its initial $349 billion funding. Since then, there have been concerns over whether the small business loan programs would receive additional funding to ensure that businesses would receive the loans that they applied for. An additional concern is ensuring that businesses that did not previously have the opportunity to apply for the loans would have the opportunity to do so under the new funding.
This interim funding is expected to provide the following:
– More than $310 billion would be allocated to the Paycheck Protection Program, which was created by the Coronavirus Stimulus Package. The Paycheck Protection Program provides forgivable loans to small businesses as an incentive for maintaining their payroll. Approximately $60 billion of this additional funding is expected to be reserved for businesses in rural and minority areas, as there were concerns over businesses in these areas having adequate access to the loan programs.
– $60 billion would be allocated to the Small Business Administration Disaster Relief Fund.
– $75 billion would be allocated to Hospitals.
– $25 billion would be allocated to Coronavirus testing.
Note that the expected additional funding does NOT change the application requirements for either the Paycheck Protection Program or the Small Business Administration’s Disaster Relief Fund.
As the situation with the COVID-19 pandemic is rapidly changing, we recommend that businesses seek legal advice to stay abreast of additional developments. The Small Business Legal Advisors at Gardi & Haught, Ltd. are here to help guide you and we will continue to monitor developments and keep clients apprised of pertinent information.
Contact Taylor Lemick at tlemick@gardilaw.com to discuss your business needs today.
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