Much to the dismay of countless small businesses, the Paycheck Protection Program (PPP) was depleted of its original funding late last week. In an effort to replenish the Program, Congress pulled together the Paycheck Protection Program and Health Care Enhancement Act, which President Trump signed into law today. The Act increases the funding available for PPP loans while also making a few other additional emergency appropriations in response to the COVID-19 outbreak.
Increased Funding for the Paycheck Protection Program
- Congress increased the amount of funding available for PPP loans by $310 billion.
- $30 billion of this new funding will be set aside for loans to be made by insured depository institutions and credit unions with assets between $10 billion and $50 billion. An additional $30 billion has been set aside for loans to be made by community financial institutions with less than $10 billion of assets.
- Although the amount of funding increased, the bill did not change any of the terms of PPP loans, which were summarized in one of ATKG’s previous overviews.
As before, these new funds are supposed to be issued on a first come, first served basis. If you already applied, we strongly suggest that you contact your bank immediately to see if your application is ready for submission. If you have not applied, you should contact your banker and ATKG representative immediately so that we can assist you with gathering the information needed. It is speculated that the additional $310 billion of funds will likely be depleted faster than the original funds were.
No guidance has been issued on when the SBA will begin accepting new PPP loan applications.
Increased Funding for Economic Injury Disaster Loan (EIDL) Grants
- $50 billion in additional funding has been appropriated for additional disaster loans
- An additional $10 billion was approved for Emergency EIDL Grants
- Agricultural enterprises with fewer than 500 employees are now eligible entities for EIDL grants.
The EIDL grant program was originally summarized in this ATKG update.
Conclusion
If you’re interested in either of these loan programs, there is no time to waste! ATKG is here to assist you and your business in any way we can.
ATKG Coronavirus Newsroom
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Julie Spurlock is a CPA in the firm’s tax practice. She joined ATKG in 2017 as an intern while attending undergrad at St. Mary’s University. She went on to enter the master’s in accounting program at the University of Texas at Austin. Julie received the 2016-2017 Accounting Excellence Award given by the Texas Society of Certified Public Accountants, which recognizes one outstanding student from each Texas college and university. For further information on this topic or other tax questions please contact your ATKG tax advisor at 210.733.6611 or office@atkgcpa.com.
