Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Funds Available on Monday, April 27
UPDATE: The SBA will resume accepting Paycheck Protection Program (PPP) loan applications on Monday, April 27 at 9:30 a.m. CDT from approved lenders.
Congress has passed a second appropriation of Paycheck Protection Program (“PPP”) funding. The bill passed the Senate on Tuesday and it passed the House yesterday. The President will sign the bill into law today. The new law will add $310 billion to the program.
There are no significant substantive changes to the PPP in the new law, even though many have argued that Congress should clarify or further expand upon the current PPP terms in the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). As a result, many questions remain unanswered and we will continue to look to the Department of Treasury and the Small Business Administration (“SBA”) for guidance.
Overall, this means that lenders will soon be able to accept and approve PPP loan applications again. At this time, there is no information as to exactly when the SBA will allow lenders to submit applications for approval. We will continue to closely monitor this space, and we will update the firm’s website here as information becomes available.
As a reminder, the PPP loan program is a first-come, first-serve program, but it is ultimately up to you and your lender to push your application through to the approval stage. If you have any questions about your company’s PPP loan eligibility, application, or use of funds, FMJ is available and ready to answer your questions.
Additionally, the new law also appropriated additional funds to the SBA’s Economic Injury Disaster Loan (“EIDL”) program. This new law provides $50 billion in funding for EIDL loans, and it adds $10 billion in funding for the EIDL grants created by the CARES Act.
While there were no changes to the PPP loan, there was one substantive change to the EIDL program of note – agricultural small businesses are eligible for EIDLs. If you are an agricultural small business interested in applying for an SBA EIDL, FMJ can help you determine your eligibility and assist with the EIDL application process.
For specific guidance or more information please contact Jordanne Kissner at firstname.lastname@example.org, Bob Fafinski at email@example.com, or Jim Seifert at firstname.lastname@example.org. You can also find some frequently asked questions about the PPP on our website here.