You may have read that Congress just passed an additional $484 billion for an interim coronavirus relief bill, signed into law on April 24th. While this is great news, we think it is important to break down that huge dollar amount into smaller pieces, to understand your opportunities as a business owner— especially the need to act promptly. While PPP applications are no longer being accepted, legislation is pending that could reopen the program.
$484 billion, deconstructed
The biggest chunk, over $300 billion, goes directly into the funds that will be disbursed by banks to businesses, as detailed by the Wall Street Journal . Of this over $300 billion, $60 billion was set aside exclusively for small, midsize, and community lenders to ensure that more funds ended up in the hands of the smallest and geographically dispersed of the small businesses eligible. Because this money is intended to add funds to the PPP, the application process for these funds is the same as it was for the original PPP funds. We can help.
The next largest chunk, $75 billion, goes directly to hospitals to fund the equipment and supplies they need to combat the coronavirus.
Next, $60 billion was set aside for the Economic Injury Disaster Loan program (EIDL). The EIDL has been around for years and was established to provide quick emergency funding for small businesses affected by natural disasters. Given the magnitude of the economic slowdown from COVID-19, EIDL funds ran out shortly after shelter-in-place orders were announced. Luckily, EIDL has received more much-needed funds. While EIDL is a loan program, up to $1,000 per employee can qualify for an advance that the SBA forgives. EIDL advances should arrive within three days of submitting the application. You can apply directly through the SBA.
The last chunk, $25 billion, was earmarked for COVID-19 testing.
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