Ward Law LLC is dedicated to keeping our clients informed about all things COVID-19 related. Our business is to ensure that you have all the information you need to keep your business going. In that regard, please read below for an update on new interim Coronavirus relief legislation.
On Friday, April 24th, the President signed a nearly $500 billion interim coronavirus bill into law. The new law includes considerable additional money for the small business loan program, known as the Paycheck Protection Program (“PPP”), which was passed last month as part of the CARES Act.
The original PPP provided $349 billion dollars for small business loans to be administered through the Small Business Administration (“SBA”). The process was streamlined by having applicants apply for the loans with designated banks and lending institutions. Those institutions would then be reimbursed for the money lent. Unfortunately, in the haste to get the money to small businesses, there were little to no safeguards put in place to ensure that the loans were truly going to “small” businesses. As a result, many larger companies also applied and received loan funds. While some have indicated they will be returning the loans, the original funding was quickly exhausted. This new relief act provides in excess of $300 billion in additional funding for PPP loans. Part of the new funds ($60 billion) are designated for the SBA’s disaster relief fund, $75 billion are designated for hospitals, and $25 billion for coronavirus testing.
Those involved with passage of this new legislation have been referring to it as an “interim” relief package. The reason for this is that there seems to be bipartisan understanding that the law is meant to be a bridge between the original funding and the next expansive round of coronavirus legislation. Unfortunately, or fortunately, depending on your point of view, the bipartisanship that has been shown with passage of these laws (4 to date) is starting to weaken. Both sides of the aisle are making statements and taking positions to more aggressively push their respective agendas and tying those goals to any future coronavirus legislation. Nevertheless, as of right now, the PPP is funded once again and can provide needed relief for small businesses who are suffering through this virus outbreak and resulting government restrictions on operations.
For any questions about PPP funding for your small business in the Covid-19 era, please email the Ward Law helpline any time at email@example.com.