The Paycheck Protection Program continues to fund businesses across the country as they weather the economic uncertainty caused by the coronavirus outbreak. Last week, additional funding was signed into law to restart the program. Also, last week, new eligibility guidance was issued.
Here are the details you need to know about both.
Last Friday, April 24th, President Trump signed into law the Paycheck Protection Program and Health Care Enhancement Act, which provides an additional $310 billion in funding for the PPP. Of this new funding, $60 billion is specifically designated for use by smaller banks and credit unions, ensuring that borrowers who apply to small and mid-sized lenders aren’t at a disadvantage. This may help smaller businesses, who are more likely to seek help from smaller lenders.
The additional PPP funding is good news for companies who desperately need these funds to stay afloat during the COVID-19 economic crisis. If you’ve already submitted your loan application, there is no need to resubmit one to the same lender.
Last Friday, April 24th, the Treasury issued its 4th interim final rule. This guidance addresses PPP eligibility issues that are now relevant due to the new funding, with a few essential areas highlighted below.
If you have been approved for your PPP loan, you likely have a handful of new questions, like what is forgivable and how should you account for these loans? Check out our blog posts below for further insight.
Asking for Forgiveness: You’ve Been Approved for Your PPP Loan, Now What?
Accounting for the Paycheck Protection Program Loans: What You Need to Know
How to Get the Most out of Your PPP Funds
As always, we are here to make the complex simple. Please reach out to us if you have any further questions or visit our COVID-19 Resource Center to keep up with our latest updates and resources.