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The Thomas Howell Ferguson Blog

Will there be additional funding for the Paycheck Protection Program (PPP)?

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.

 

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