On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act is a $2 trillion stimulus package that provides methods of economic relief to businesses, individuals, and industries impacted by COVID-19. One of the largest programs written into the CARES Act is the Paycheck Protection Program (“PPP”), which reserved $350 billion for loans to in-need small in the wake of the Coronavirus pandemic. Those funds reserved for small businesses under the PPP quickly ran dry.
However, if you are a small business owner and are still in need of funds under the PPP, you have a second bite at the PPP apple. On Friday, April 24, the President signed a bill into law to add roughly $484 billion for Coronavirus aid, including an expansion of the funds provided under the CARES Act. Namely, the legislation adds $322 billion for small business loans under the PPP. In addition to the replenishment of the depleted PPP, the new relief package includes $60 billion for small business disaster loans and grants, $75 billion in emergency funding for hospitals, and approximately $25 billion to expand and facilitate Covid-19 testing.
Notably, of the over $300 billion authorized for the PPP, $60 billion will be set aside for smaller lending facilities, including “community financial institutions.” This means that as a business owner, it is prudent to seek out smaller lenders as soon as possible and gather the necessary documentation to apply for a PPP loan. If you need assistance finding a community bank or lender, or need help gathering the appropriate documentation, Hunter Business Law is here to help. Contact us HERE to discuss the new legislation and your options thereunder.
You can find the full text of the new legislation HERE. Further, you can follow our Coronavirus alerts HERE for updates regarding the rapidly changing legal landscape of our country’s current climate.
This Blog was written by Hunter Business Law Attorney Stephanie Boussias.
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