The House approved over $480 billion in additional funding to help the program geared to keep small businesses from shuttering and their employees from going on unemployment because of the economic impacts of the coronavirus pandemic.
The bill includes more than $320 billion for the Paycheck Protection Program, or PPP, created by the Cares Act, which was passed late March 2020. The program provides forgivable loans to small businesses that keep their employees on the payroll, however, it quickly ran out of money due to heavy demand.
The $484 in additional funding would provide the PPP program with more than $320 billion. Of that, $60 billion would be set aside for community-based lenders, smaller banks and credit unions to assist smaller businesses that don’t have established relationships with big banks and had a harder time accessing the funds in the first round of loans. About $10 billion of that would also be allocated for administration fees.
The measure would also bolster the Small Business Administration’s disaster loan and grant programs, which dried up during the coronavirus crisis.
Please contact one of our attorneys at 941.748.0100 to assist you and/or your business with strategies and guidance during COVID-19.