The U.S. House of Representatives passed the $484 billion Paycheck Protection program and Health Care Enhancement Act yesterday, which includes the much anticipated $370 billion in additional pandemic-relief funding for small business.
The President is expected to sign the bill quickly in order to get the much-needed funds into the hands of small business owners. The funds will be allocated as follows:
- $310 billion will be slated for PPP for use in loans to be made by small banks, credit unions, minority-owned banks and other small lenders
- A portion will be for loans by FDIC-insured banks and CU’s with assets between $10 billion and $50 billion.
- The balance will be for lenders with less than $10 billion in assets, including; community banks, CU’s and community development financial institutions.
- $60 billion is slated for the SBA’s EIDL program which provides working capital loans up to $2 million (w/interest rates of 3.75% for small businesses and 2.75% for non-profits) for small businesses to pay fixed debts, payroll, accounts payable and other bills where payment has been impacted by the disaster.
- $10 billion of the $60 billion will go to small business grants up to $10,000 for disaster relief which will not need to be paid back.
It is not known yet when these funds will be made available or how long this second infusion will last. The $349 billion from the initial program was exhausted in just 12 days as an example. Since that time, some banks have continued to accept and work on PPP applications, in anticipation of the much-needed second round of funding.
We encourage you to check with your bank for program details and process information specific to the bank. We strongly encourage you to submit an application, if your bank is currently accepting them and if you were not able to do so during the first round.
We will continue to provide updates on any additional program details as they become available.
For detailed information on the PPP and EIDL Programs, follow the link to our comparison grid: