DISCLAIMER: This is current as of April 28, 2020.
The government approved additional funding for the Paycheck Protection (PPP) and Economic Injury Disaster Loan (EIDL) Programs towards the end of last week. You can find details on the new stimulus bill for small businesses here.
Of the $310 billion in new money set aside to reinstate PPP in the latest bill, $30 billion has been assigned to smaller lenders, such as community financial institutions, small insured depository institutions and credit unions with assets less than $10 billion. Another $30 billion was given to financial institutions with between $10 billion and $50 billion in assets. Unlike the first round of PPP funding, which went mostly to larger lenders, this will allow greater access to minority and rural small business owners who do not have existing banking relationships with bigger banks.
The SBA reopened PPP yesterday, April 27th at 10:30am, and at the time of this writing, is still accepting new applications, so we encourage all small businesses that have not yet applied to apply as soon as possible and get in the queue. Keep in mind that PPP ran out of money in just thirteen days the last time around. We’re expecting that’ll happen even faster this time given the pent-up demand, so now’s the time to think outside of the box.
Many of our clients have had success with smaller lenders as well as online lenders such as kabbage.com and fundera.com. The online arm of BBVA, azlo.com, is also accepting new applications from existing clients. You can look for financial institutions that are still open to new PPP applications here.
The EIDL Program remains closed to new applicants. Even with the additional $60 billion that was allocated to the program, of which $10 billion would be grants, the SBA did not feel that the new money would be sufficient to cover the applications that were already submitted and in the pipeline.
For additional questions on PPP, EIDL or your business, please email us and we’ll get back to you within 24 hours.