Will there be additional funding for the Paycheck Protection Program (PPP)?
Members of the Senate began nearing a deal on Sunday that would bring an additional $370 billion into loan programs for small businesses. Talks were sparked after the initial $349 billion ran out of money on Thursday.
Of this amount, $310 billion will be allocated to the Paycheck Protection Program (PPP). Within that $310 billion, $60 billion of this amount is specifically being earmarked for rural and minority groups. An additional $60 billion will be directed to the Economic Injury Disaster Loan (EIDL) program, which offers loans for small businesses and is administered by the SBA.
This $370 billion package is not expected to provide assistance to state and local governments. Current discussions are suggesting that this will be considered in separate and/or future legislation.
The legislation in the works regarding the $370 billion could include add-ons for funding of hospitals and enhanced Coronavirus testing, with additional funding of $75 billion and $25 billion respectively for each.
For questions on the impact of COVID-19 on small businesses, check out our resource center.