4.24.20 | Client Alert COVID-19 Update
In an effort to help more businesses stay afloat during the COVID-19 crisis, Congress approved a second tranche of funds for the Small Business Administration (SBA’s) Paycheck Protection Program (PPP). The President is expected to sign the approved bill into law later today. Last week, the SBA announced that the initial $349 billion appropriation for PPP loans under The Coronavirus Aid, Relief, and Economic Security (CARES) Act was completely used less than 2 weeks into the program. Soon thereafter, the SBA released a statement that it was no longer able to accept new applications.
Since running out of money last week, Congress has been negotiating to replenish the PPP to meet the demands and needs of small business owners. This new stimulus deal consists of an interim spending bill of $484 billion, which includes more than $310 billion for PPP loans, and increased funding for the economic injury disaster loan program, coronavirus-related testing, and health care providers. The additional cash infusion is welcome news for small employers and self-employed individuals who were unable to receive forgivable loans the first time around.
The new bill is not likely the end of the government response to the health and economic crisis. Please stay tuned for more information.
For more information on this topic or any other matter related to the COVID-19 pandemic, please contact your Berdon advisor and visit Berdon’s COVID-19 Information Center.
Berdon LLP New York Accountants