Congress and the White House have reached an agreement for the second round of funding for business relief programs. Details are forthcoming.
It’s expected that the package will total $450 billion and include:
- $300 billion for the Small Business Administration’s popular Paycheck Protection Program (PPP)
- $50 billion for the Economic Injury Disaster Loan (EIDL) program
- $25 billion for testing
- $75 billion for hospitals
Notably, $125 billion of the PPP money will be set reserved for small businesses that don’t have strong relationships with local banks. (Hopefully this will address one of the primary problems with the first round.)
The replenishing of the EIDL program is coming sooner than some expected. This program is potentially a good fit for businesses with non-payroll related needs.
Many businesses find themselves in a Limbo state, having applied for PPP assistance before the first round’s funding was depleted and not having heard if they were approved. The SBA generates a unique loan origination number upon approval.
“If you’ve already gotten that loan origination number from the Small Business Administration or your lender has that, you are part of that [original round of funding] and you should be getting your loan disbursed,” said Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce Neil Bradley said. “The thing to check on is where you are in that approval process.”
Stay tuned for updates!
Note: This is a summary of aggregated information from other parties and does not express the direct advice of Sam Goldenberg & Associates.