Paycheck Protection Program (PPP) Updates
On April 24, 2020, President Donald Trump signed into law a $484 billion stimulus package, including an additional $310 billion of funding for the Paycheck Protection Program (PPP), in which funds were depleted earlier this month. The additional funding will allow small businesses previously unable to secure funds under the PPP an opportunity to obtain forgivable loans to keep employees on the payroll.
$310 billion increase for PPP
Sets aside the following amounts:
$30 billion for loans made by Insured Depository Institutions and Credit Unions that have assets between $10 billion and $50 billion
$30 billion for loans made by Community Financial Institutions, Small Insured Depository Institutions, and Credit Unions with assets less than $10 billion
No changes to eligibility for the PPP
$10 billion increase for Economic Injury Disaster Loan (EIDL) Grants and an additional $50 billion to support EIDL Loans
$75 billion increase for reimbursement to hospitals and healthcare providers
$25 billion for COVID-19 tests
The link below provides an overview of certain key questions the Small Business Administration (SBA) has answered regarding loan forgiveness, along with a number of unanswered questions that SBA will hopefully address in future guidance. It also addresses recent SBA guidance regarding the good faith certification required to be made at the time of application for a PPP loan that has created uncertainty and concern for many businesses. (See FAQ, question 31).