WASHINGTON (BRAIN) – The Small Business Administration has officially received an additional $ 310 billion to restart its two loan programs that were cash-strapped last week.
President Donald Trump enacted the $ 484 billion COVID-19 relief bill on Friday after the House of Representatives and Senate approved the measure this week. The back-up plan also includes a requirement that the Trump administration develop a national COVID-19 testing protocol and provide additional funds to hospitals.
The SBA said in a statement Friday afternoon that loan applications will be accepted by approved lenders starting Monday at 10:30 a.m. EDT.
“We encourage all approved lenders to process previously submitted loan applications from eligible borrowers and to disburse funds promptly,” the SBA said. “All eligible borrowers who need these funds must work with an approved lender to apply. Borrowers should carefully review PPP regulations and guidelines as well as the certifications required to obtain a loan. … “
The $ 349 billion Paycheque Protection Program ran out of funds on April 16, the same day the SBA said it would no longer be taking Economic disaster loan applications. EIDL received an additional $ 60 billion.
“Our mission is to ensure that every small business bicycle owner and retailer in America understands their options and the resources available to support them,” said Jenn Dice, chief operating officer of PeopleForBikes, in a statement to the following the announcement. “Keeping people at work during this difficult time is crucial, and the Paycheque Protection Program can help. “
PeopleForBikes, who continued to advocate for additional financing, recommended that retailers prepare all financial material before contacting their lender. PFB says questions about the PPP and eligibility should be directed to their lender, local SBA office, lawyer, or commercial insurance agent.
In just under two weeks after the PPP went live, the SBA said more than 1.6 million small businesses in all 50 states and territories have received wage assistance in the form of forgivable loans. Almost 5,000 lenders participated, with about 20% of loans approved by lenders with less than $ 1 billion in assets and about 60% approved by banks with $ 10 billion or less in assets. No lender represented more than 5% of the total amount of the program.
The low-interest EIDL has offered up to $ 10,000 to businesses experiencing a temporary loss of revenue. Both programs were offered to qualified small businesses with fewer than 500 employees. Companies applying for EIDL in certain industries may have more than 500 employees if they meet the SBA size standards for those industries.
P3 loans are forgivable if all employees are on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.