Congress Provides More Funding for Paycheck Protection Program and Economic Injury Disaster Loan Program
On April 23, the House passed the Paycheck Protection Program and Health Care Enhancement Act, which allocates additional funds for the Paycheck Protection Program (PPP) and Economic Injury and Disaster Loan (EIDL) program. President Trump signed the act into law on April 24.
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Congress authorized $349 billion for PPP loans, but the program’s funding was exhausted in 14 days. The Enhancement Act provides an additional $310 billion for PPP loans and earmarks $60 billion for small lenders and community financial institutions.
The Enhancement Act also allocates $60 billion for the EIDL program, which had run out of funds, and specifies that $10 billion of those funds are to be used for emergency EIDL grants.
Additionally, the act provides $100 billion for hospitals and for COVID-19 testing.
The additional funding is welcome news for business owners seeking economic relief through these loan programs. For more information on the PPP and EIDL program, contact your KSM advisor or complete this form.
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