Additional Lending for Small Business Relief Programs
Updated on April 27, 2020 at 3:30 p.m.
On April 24, 2020, President Trump signed the Paycheck Protection Program and Health Care Enhancement Act providing additional lending authority for certain Small Business Association (SBA) programs.
Paycheck Protection Program
The Act provides an additional $310 billion in funding for the Paycheck Protection Program (PPP) and added several additional checks to the program. The SBA began accepting applications for the second round of funding April 27th at 10:30 eastern time.
Taxpayers that applied previously and did not receive funding should maintain contact with their lender and request prioritization in submitting applications to the SBA. Other taxpayers should work with their bank or financial institution to make sure they have paperwork ready. Taxpayers should be ready to apply as soon as possible. If you have already received funding then you are not eligible to apply for more.
The SBA has also updated its FAQ’s related to PPP loans which can be found here.
Economic Injury Disaster Loan (EIDL) Grants
The Act provided an additional $10 billion in funding for the Emergency EIDL grants. Eligible taxpayers can request a $10,000 advance under the EIDL program.
The Act also added eligibility for EIDL grants to certain agricultural operations with less than 500 employees.
Small Business & Lender Protections
In order to ensure that more small businesses are able to obtain funding, the Act sets aside $60 billion in minimum loan funding to be issued by small banks, credit unions and other community financial institutions.
Please check our website or consult with your MHCS adviser for the latest updates on this evolving matter.