The President signed a new Coronavirus stimulus package that adds $484 billion more in relief for small businesses, hospitals and medical testing.
Included in the package is an additional $310 billion for the Paycheck Protection Program (PPP), which ran out of small business loan funds on April 16. $60 billion of these funds will be earmarked for small banks and credit unions in an effort to reach small underserved businesses that do not have established banking relationships.
The package also allocates $60 billion for the Economic Injury Disaster Loans (EIDL) and grant programs available through the Small Business Administration (SBA). Eligible healthcare providers will receive an additional $75 billion of relief, while $25 billion is dedicated to expanding COVID-19 testing.
If you have applied for a EIDL or PPP loan, your application is already in the queue to be considered for a portion of these new funds. If you are planning to apply, time is of the essence, as this round of funds is expected to be depleted just as quickly as the first.
Before applying for a PPP loan, heed the recent SBA guidance to carefully review the certification that your business is required to make, in good faith, that the loan is necessary to support ongoing operations.
Lou Pizzileo, CPA
Compliments of Grassi Advisors & Accountants – a member of the EACCNY.