This Thursday, April 23 the House ratified a stimulus bill to provide $484 billion of pandemic relief. This bill replenishes the Payroll Protection Program (PPP) and Economic Injury and Disaster Loan (EIDL), two popular programs to provide relief to struggling small businesses. It also grants funding to support hospitals and an expansion of COVID-19 testing. Here is a breakdown of how the funds will be allocated:
Source: Wall Street Journal
Limited resources, operational inefficiencies, and a high volume of requests left many eligible businesses unable to receive funding during the first round of relief from the CARES Act last month. Most applicants should be placed on the queue for this second round, but we recommend confirming with your lender. Any eligible businesses that still haven’t applied should begin gathering documentation and preparing to apply as soon as the window opens. Should your existing bank be unable to receive applications due to a high demand, consider a smaller lender that is open to working with clients without a prior banking relationship.
Another stimulus relief package is anticipated in late May or early June. While still hotly debated, the next bill may include funding for state and local governments, a bankruptcy code for insolvent states, election reform, additional housing relief, infrastructure programs, hazard pay for front-line workers, and additional funding for the USPS.
Please contact our office with any questions about the Payroll Protection Program, Economic Injury and Disaster Loans, or other stimulus provisions from the CARES Act. We will stay abreast of changes and continue keeping you informed. We hope you and your families stay safe and healthy during this time.
The information provided is for educational and informational purposes only. This should not be construed as legal/tax advice. Should you require legal/tax advice, please contact a legal/tax professional in your area.