On April 21, the Senate approved $484 billion in new coronavirus aid, of which $310 billion will be used to replace the exhausted funds of the Paycheck Protection Program (“PPP”). The House of Representatives is expected to pass the bill within days, with PPP loan application processing expected to recommence as early as April 23, pending passage of the bill.
Of the amount allocated towards the PPP, $60 billion is specifically reserved for small banks and community banks, with another $60 billion authorized for small-business loans and grants delivered through an existing small-business disaster aid program, including the emergency Economic Injury Disaster Loan (“EIDL”) grant program.
Unfortunately, the additional $310 billion is not expected to satisfy the remaining demand for the PPP, as such, it is expected that the PPP will, again, exhaust itself (most likely by early next week), leaving many qualified applicants, again, without access to the funds.
Read our recent COVID-19 Alert by Matthew Mitchell here.