On Friday, April 24th the president signed another relief package which extends the Paycheck Protection Program (PPP) and allocates an additional $310 billion. The original $349 billion allocated for the PPP ran dry in just under two weeks due to unprecedented demand. Several public companies who were under fire for applying for these funds, succumbed to the backlash and returned the money back to the program.
The latest package added provisions to enhance the ability of both small to mid-sized lenders and borrowers to have access to funds. Specifically, $60 billion is designated for small to mid-sized businesses. The additional funding also allocates money toward the needs of hospitals and health care providers and expands coronavirus testing capacity.
The qualification and forgiveness portions of the PPP program remain unchanged, and the bill did not contain any new tax provisions. The Small Business Association (SBA) began accepting applications on Monday, April 27th.
For more information, visit the Small Business Association website for PPP lenders: https://www.sba.gov/paycheckprotection/find.
TR# 3063034 DOFU 4/2020