Reminder: Federal Paycheck Protection Program Funding Available Now!
On April 27 , the Small Business Administration (SBA) resumed accepting Paycheck Protection Program (PPP) applications from participating lenders.
The President signed into law the latest COVID-19 response bill that replenished the PPP with an additional $310 billion as well as an additional $10 billion for SBA’s Economic Injury Disaster Loan (EIDL).
The bill did not make any substantive changes to the PPP or EIDL program. Congressional leadership is characterizing the latest COVID-19 response bill as an interim funding effort, with the expectation that they will continue to negotiate a larger “phase 4” package in the coming weeks.
Meanwhile, the SBA also updated its Frequently Asked Questions, including by providing additional information related to if and how the agency will review individual PPP loan files.
This additional guidance comes as Deputy Secretary of the Treasury Justin Muzinich has been tasked with assisting the SBA in administering the PPP.
According to one report, this suggests that “the Treasury Department and SBA continue their close coordination on the successful implementation of the Paycheck Protection Program.”
This same report suggests that larger financial institutions are concerned that smaller financial institutions are now being prioritized, leaving many of the big banks’ applications pending and with little information about their current status.