On Thursday April 23rd, members of the U.S. Congress reached and approved a new deal to increase financial aid to the recently passed Paycheck Protection Program (PPP) and the Small Business Association’s (SBA) Economic Injury Disaster Loan (EIDL) program. The additional funds bring this government assistance effort to a grand total of $833 billion within a two-month period.
Since the original CARES Act’s fund depletion last week, congressional leaders decided to act quickly to keep the U.S. economy afloat. U.S. Chamber Executive Vice President and Chief Policy Officer, Neil Bradley made the following statement after the deal’s passing.
“We applaud congressional leaders and the administration for reaching a deal to increase desperately needed funding to support America’s small businesses during this difficult time. These additional funds could make the difference between keeping a business up and running over the coming weeks or being forced to reduce salaries, layoffs, or shutter business entirely. Congress should enact this legislation immediately to help small businesses that need the funding right now.”
The categories of top priority for Congress, and their details, include:
- $25 Billion for COVID-19 Testing: This covers expenses to research, develop, manufacture, purchase, administer, and expand efforts totaling $11 billion for states and $1 billion for CDC contact tracing.
- $484 Billion addition for Paycheck Protection Program (PPP): This sets aside $30 billion for loans by Credit Unions and Insured Depository Institutions that have assets between $10 billion and $50 billion, as well as other financial institutions.
- $75 Billion increase for reimbursement to hospitals and healthcare providers: Details pertaining to the CARES Act financial increases remain consistent.
- $50 Billion increase for EIDL Loans and $10 Billion for grants: This allows agricultural enterprises of the Small Business Act with less than 500 employees to receive EIDL loans and grants.
For more details on the New CARES Act of 2020, please visit the U.S. Chamber of Commerce. Walker’s Legacy will continue to provide timely updates pertaining to small businesses and entrepreneurs within our network as they develop.
Since Congress passed the initiative to replenish funding for the CARES ACT, the U.S. small business sector has gained another opportunity for financial assistance due to the effects of COVID-19. The first wave of funding depleted in a matter of 13 days and Congress is hopeful that this next wave will continue to keep businesses afloat. This time around, an additional $484 billion was added to the Paycheck Protection Program (PPP) for credit unions and other financial institutions to disburse loans to businesses in need.
This week, the PPP reopened to allow business access to that $484 billion, however, the process did not go as smoothly as it did the first time. On the first day of reopening, the Small Business Association’s loan application portal, E-Tran, failed and would not allow information to be entered into the system, thus preventing small businesses to access the program.