UPDATE: 4/24/20, 6:04 a.m.: The House of Representatives has passed this bill. It now moves to the president's desk for signature.
A nearly $500 billion new federal aid package designed to provide economic relief to small businesses impacted by the coronavirus has passed the Senate. It now moves to the House for a vote on Thursday.
The focal point of the new legislation is an additional $310 billion it will allocate to the Paycheck Protection Program, a key feature of the first coronavirus relief package (the CARES Act), which dried up within two weeks of going live. Out of the new money for the PPP, $60 billion will go to smaller lenders and credit unions that can provide loans to small businesses that might not bank with major financial institutions. Another $60 billion will be available for a small-business loans and grants program delivered through an existing small-business disaster aid program, $10 billion of which would come in the form of direct grants.
Eligibility and application procedures for the PPP remain the same: Companies with fewer than 500 employees are eligible for the loans, which become forgivable if the money is put toward payroll by hiring back or retaining employees. The maximum loan under the PPP is 2.5 times a company’s average monthly payroll, up to $10 million. Individual companies apply directly to participating lenders.
The new legislation also provides an additional $75 billion for hospitals and $25 billion for a national COVID-19 testing strategy.
The bill will now move to the House, where it is expected to pass on Thursday. President Trump has vowed to sign it.
If you plan to apply for these funds, please be ready to go with your application. The response to the PPP has been overwhelming, and we expect the next wave of applications to be as robust as the first. Please reach out for help.