Congress Authorizes Additional Funding for Paycheck Protection Program April 24, 2020

ALG small, paycheck protection programCongress Authorizes Additional Funding for Paycheck Protection Program
By Adam Glassman 

More relief is on the way! After the initial $349 billion allocated to the highly sought after Paycheck Protection Program (“PPP”) was exhausted in less than two weeks, Congress went back to the negotiating table and authorized a new stimulus package for additional PPP loan funding. This latest stimulus package will make an additional $310 billion available for PPP loans, $60 billion of which is being allocated to smaller lending institutions such as credit unions and community banks. In addition, $10 billion is being allocated to fund grants through the Emergency Injury Disaster Loan (“EIDL”) program.

PPP loans are being distributed on a first-come first-serve basis, and many lenders are prioritizing loans for their existing client base. It is anticipated that this second round of funding will be exhausted just as fast as the first, and now is the time to contact your lender if your business has not already sought a PPP loan. As for those businesses that submitted applications but did not receive funding during the first round, it is prudent to verify with your lender whether there is a need to reapply or submit additional documentation.

For more details regarding PPP loans and the EIDL program, please refer to these additional resources prepared by McCarthy Lebit:

The attorneys at McCarthy Lebit remain available to discuss any questions or needs that your business may have. We are continuing to stay apprised of COVID-19 developments and will continue to update our materials accordingly.

Adam Glassman is an attorney at the Cleveland, OH-based law firm of McCarthy, Lebit, Crystal & Liffman. 

 

While we would be thrilled to work with all individuals, institutions and companies that read our advisories, we  want to clarify that these insights do not form a lawyer-client relationship and represent only general guidance without access or reference to all of the specific facts and circumstances.  If you do wish to engage McCarthy Lebit on a specific matter, please contact us by calling 216-696-1422 or by filling out an inquiry form located here.  If you are already a firm client, please contact the McCarthy Lebit attorney you work with to discuss these advisories and/or the nature of your concern.  In closing, please understand that the law, especially during this pandemic, is changing rapidly and we would recommend that you regularly contact your legal counsel to ensure that your actions are taken based on the most up-to-date versions of the laws.

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