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:
- Updated SBA Guidance for the Paycheck Protection Program
- CARES Act Expands the SBA EIDL Program
- New SBA Loan to Keep Workers Paid and Employed
- New Guidance for Self-Employed Persons Seeking Paycheck Protection Program Loans
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.
