Today, the U.S. House of Representatives passed a bill that will, in part, replenish the Paycheck Protection Program (PPP), following passage of the bill in the U.S. Senate on Tuesday. President Trump has said he will sign the bill into law. We will notify our members when the funding from the $484 billion “Phase 3.5” stimulus package becomes available.
Paycheck Protection Program
The Phase 3.5 relief bill will add $320 billion to the funding pool for the PPP, the forgivable small business loan program, after businesses exhausted the initial $349 billion allocated for the program in less than two weeks. Small businesses are defined as companies with fewer than 500 employees.
Go through your lender to apply for the PPP.
Economic Injury Disaster Loan Program
Also included in the bill is $60 billion in additional funds for the Economic Injury Disaster Loan (EIDL) program, which allows small businesses to borrow up to $2 million with an initial grant of up to $10,000. EIDLs are low-interest loans (3.75%) to cover accounts payable, fixed debts, payroll, and other bills due to COVID-19.
You may get both an EIDL and a PPP loan, as long as they don’t pay for the same expenses. Significantly, agricultural operations will now be eligible for the EIDL program.
Go through the Small Business Administration (SBA) to apply for the EIDL program. Click here to monitor availability of funds on the SBA Coronavirus Relief Options website.