PPP Funding Temporarily Restored
On April 24th, 2020, President Trump signed into law a $310 billion infusion of funds into the Paycheck Protection Program (PPP). You can read about the basics of the program and find information on how to apply here. The major appeal of these loans is that they are forgiven if 75% of the loan is used on payroll. These funds are intended to replenish the PPP loan program which ran out of money late last week.
The demand for these loans continues to be extremely high, with this round of funding expected to run out potentially faster than the last. Some experts estimate that this round of funds will run out within days. Small businesses across the country are eligible for these loans, and the generous loan terms makes them very attractive to businesses in a wide range of industries. This infusion of funds also included $50 billion for the SBA Economic Injury Disaster Loan (EIDL) program, along with $10 billion for the EIDL emergency grants. Many TCIA members have taken advantage of the $10,000 emergency grants, and we encourage our members to speak with their bank if they had previously been unable to get either the PPP or EIDL advance.
TCIA anticipates another stimulus package to be negotiated in Congress. Negotiations on this so called “Phase 5” plan are underway, and we expect that work to begin in earnest when Congress returns some time in May. TCIA will continue to monitor legislation in Washington DC and advocate on behalf of our membership as the need arises. Please reach out to Aiden O’Brien, TCIA’s Advocacy & Standards Manager at email@example.com with any questions on our associations advocacy and government relations efforts.
What to do if you missed out on round one of the PPP:
If you missed out on round one of the PPP, and want to take advantage of round two, you will need to prepare immediately as these funds will likely go even faster. We have been hearing that community banks and smaller credit unions have been more responsive to small businesses, especially if they already have a relationship with said business. Typically, larger banks have not been as responsive as they handle a far larger pool of loan applications.
If possible, apply for the PPP loan through a community bank or credit union which your business has an existing relationship with. These funds are doled out on a first-come, first-served basis, so TCIA members who want these loans should be in contact with their bank as soon as possible.