BREAKING: The Senate has approved an additional $480 billion coronavirus aid package that includes additional money in new funding for small businesses hurt by the outbreak.

We are urging our clients, if they have not already applied, to IMMEDIATELY apply for the Paycheck Protection Program and/or the Economic Injury Disaster Loan. 

Many missed the first round by moving too slow, don’t make the same mistake again. 

Funding for the initial tranche of aid was exhausted just 14 days after the application window opened, prompting complaints and concerns from the small business community. It is now more important than ever to be prepared to get yourself “in line”. 

This new legislation is expected to total $480 billion, with funds going primarily to the Small Business Administration, but also to hospitals and a new virus testing initiative. The deal appropriates $320 billion for the Small Business Administration’s Paycheck Protection Program (PPP), with we believe $60 billion being set-aside for small banks, credit unions and other community lenders to expand the PPP to more businesses, including those without bank accounts. And another $60 billion would go to the SBA’s Economic Injury Disaster Loan program (EIDL) and $10 billion to the SBA’s Emergency Economic Injury Grant program. 

If your business has suffered, we are strongly encouraging you to apply IMMEDIATELY for both programs. 

Some key considerations:

• At this point, there are no indications of a change regarding the PPP application process
• If you applied for the PPP loan and did not receive notification from your bank or funding, we’d advise that you contact your bank to inquire about the next steps. Ask if your lender has maintained an application queue or if you will be required to apply again
• Reach out to more local SBA lender if you originally applied with a big bank, like Chase or Wells Fargo, and send in a backup application
• Have all of your supporting information and documentation ready in the event you are required to apply again.
• If you did not apply in the first application window, gather and organize your support documentation to be ready as soon as the second application window opens. As in the case of the first round, the funds are expected to be depleted very quickly
• Get your application prepared for the Economic Injury Disaster Loan (EIDL) to file when the SBA begins accepting new applications for that as well.

Please let us know if you need any help understanding what’s available, the process, suggested strategies, gathering documents or information. We’re here for you. 

We will continue to provide updates as new information becomes available.