The U.S. House of Representatives has authorized $310 billion in additional funding for the Paycheck Protection Program (PPP), the U.S. Treasury administered loan program designed to keep employees on small company payrolls, by a vote of 388-5-1. Initial funding of $350 billion, created as part of the $2 trillion rescue package passed last month, ran out of funds last week. President Trump today (April 24) signed the legislation.
Companies that applied, but did not receive funding, in the first round should be in touch with their banks to ensure that paperwork is in order and ready to be processed as demand for these funds continues to be strong. Lending is expected to begin by Monday (April 27). The funds will not last long, which opens discussion for a fifth relief package.
Qualifying businesses may apply through any existing SBA 7(a) lender or any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. Businesses should consult with a local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders, as well as additional information and full terms can be found at www.sba.gov.
The Paycheck Protection Program is implemented by the Small Business Administration. For more information, please visit sba.gov or coronavirus.gov.