(Member Alert sent April 25, 2020)
The White House announced Friday night (April 24) that the Small Business Administration (SBA) will resume receiving applications for the Paycheck Protection Program (PPP) at 10:30 am Eastern time on Monday (April 25) following the infusion of an additional $320 billion into the popular program in legislation enacted by Congress.
NGFA-member companies interested in applying for the program may wish to contact their lenders immediately, including those whose applications have been pending with their lender after the PPP ran out of funds on April 16.
President Trump signed the new bill into law late Friday. The PPP, initially established under the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted in March, is among several economic measures enacted to provide economic assistance during the COVID-19 pandemic.
The latest infusion allocated $60 billion of the $310 billion infusion for use by small banks and credit unions – half to lenders with assets of less than $10 billion, and half to those with assets between $10 billion and $50 billion.
Under PPP, companies with 500 or fewer employees may seek loans of up to $10 million from banks, which are forgivable if the companies use 75 percent of the loan amount to keep employees on the payroll for eight weeks or hire back positions before July 1, 2020 to restore employment and salary levels for any changes made between Feb. 15, 2020 and April 26, 2020.
More details on this and other provisions of the legislation were reported in the April 24 NGFA Newsletter, which is available here