Federal Small Business Disaster Assistance Update
The Federal Government reopened the *Small Business Administration (SBA) **Paycheck Protection Program (PPP) on Monday, April 27. *According to the SBA, they have approved over 450,000 loans for $50 billion in the first 24 hours of the reopening of the program. Loan sizes are much smaller than in the first round–average loan size is $111,000 compared to $206,000 in round 1. If you have not yet applied for PPP and you wish to do so, YOU MUST APPLY FOR THESE FUNDS ASAP IF YOU WANT THE BEST CHANCE OF GETTING FUNDED. Call your bank today to see if they are still accepting applications. IF YOU HAVE NOT YET APPLIED OR BEEN TOLD BY A BANK THAT THEY CANNOT PROCESS YOUR LOAN CONTACT US RIGHT AWAY–WE MAY BE ABLE TO FIND YOU A BANK TO ACCEPT YOUR APPLICATION. We expect funds to run dry in the next day or two, and are not optimistic that all of the qualified applications that are ready for SBA submission by lenders will be funded.
The SBA’s Economic Injury Disaster Loan (EIDL) has not been reopened for new applications. The SBA is still working on EIDL applications already submitted through their website. We will continue to monitor to see when and if they open applications for new applicants.
The Paycheck Protection Program is administered by a financial institution and provides for a partially forgivable loan equivalent to 2.5 times your monthly payroll. You can learn more about it here.
The Economic Injury Disaster Loan program is administered by the Federal government through the SBA. Loans can go up to $2 million and you may be eligible for an up front grant of $1,000 per employee retained for a maximum of $10,000. You can learn more about it here.