The $484 billion interim emergency bill passed by the US House and Senate includes expanded funding for small businesses and hospitals and money for coronavirus testing.
The revised bill replenishes two funds intended to help small businesses through the coronavirus pandemic – the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program and makes an additional $310 billion available to help small businesses.
This comes after the initial small business relief fund of $349 billion was exhausted in just 13 days. That first round saw more than 1.6 million loans issued, administrated by more than 5,000 lenders, more than the Small Business Administration has processed in the last 14 years.
It is uncertain how long this next installment will last and whether there will be additional tranches of relief available. We will continue to help clients who qualify to navigate the application process.
What has changed this time?
The new bill adjusts the way the money is disbursed, in response to complaints that the smallest of small businesses were at a disadvantage compared to larger businesses with better banking relationships.
As part of the $310 billion in new funds, $60 billion will be reserved for lenders with less than $50 billion in assets, and $30 billion for lenders with less than $10 billion in assets. In addition, the EIDL, which also exhausted its earlier pot of funding, will receive $60 billion to distribute to businesses in need – broken down into $50 billion in loans and $10 billion in grants. Beyond that, this part of the bill remains the same.
We anticipate that the demand for this relief will be very high. If you need help determining if you qualify and with the application process, please email our COVID-19 team Elannie Damianos, Allan Rooney, Tim Davis, Abbey Docherty, or Charles Arrowsmith, or call us at 212 545-8022.
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