House and Senate Pass Legislation Providing Additional Funding for the Payroll Protection Program

Link to article New Start DC social
Share Post

Today the House passed an interim coronavirus relief package that includes funding for the Small Business Administration’s (SBA) Payroll Protection Program (PPP) and the Economic Injury Disaster Loans as well as $75 billion for hospitals and $25 billion for disease testing.

The PPP, which ran out of the initial $350 billion in funding within two weeks, will receive an additional $310 billion, with $60 billion specifically earmarked for small lenders. The parameters for the program remain the same and can be found under the SBA’s existing guidelines. The Department of the Treasury has stated that companies seeking loans must certify that, “current economic uncertainty makes this loan request necessary to support the ongoing operations of the business.”

Many small businesses were waiting for approval for PPP loans when the program ran out of funds. Once the legislation is signed by the president, the Department of the Treasury will work to get the funds to the SBA program as quickly as possible. It is unclear when the SBA will begin accepting applications to the program again. Breweries applying for the funds should contact their lending institutions and ensure that they have all the necessary paperwork needed to process their loans.

The House and Senate are expected to start working on the next piece of legislation in the coming week. Both chambers are recessed until May 4.

Was this article helpful?