Paycheck Protection Program - New Updates
April 28, 2020
Please find pertinent information from the Florida Chamber of Commerce related to additional federal funding for small businesses.
“Phase 3.5” Relief Package Details Released – UPDATED
Congressional leaders released details late Tuesday on a $484 billion “Phase 3.5” stimulus package. This package includes an additional $321 billion for the Paycheck Protection Program (PPP), which offers grants to small businesses struggling to make payroll, and a separate provision worth $60 billion (including $50 billion in loans and $10 billion in grants) for economic disaster loans (EIDL). The proposal also sets aside $60 billion of the funding allocated to the PPP for loans by credit unions and other community-based financial institution. Also included: $75 billion for hospitals and $25 billion for coronavirus testing. This tranche of funding for hospitals is in addition to the $100 billion in relief funds to hospitals and other healthcare providers in the CARES Act.
This package replenishes the two key programs available for small businesses- the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP)- that the Small Business Administration (SBA) announced had reached its funding capacity on April 16. In Florida, 88,997 businesses have secured nearly $18 billion ($17,863,199,837 to be exact) of the $349 billion in loans under the PPP. See this recap of loan approvals for PPP loans from the SBA.
Already Applied for PPP or EIDL Funding?
If your business had previously applied for the PPP program, you should check with your lender on whether or not reapplication is necessary. Many banks have maintained a queue of applications and were waiting on SBA approval for processing. The SBA will continue to process EIDL loans and PPP loans once the new funding has been approved and allocated by Congress.
For more information, visit the Florida Chamber of Commerce