New funding for the salary protection program: what it means for you

As you may have read, Congress just passed an additional $484 billion for interim coronavirus relief bill, which was signed into law on April 24. Although this is good news, we think it is very important to break down huge amounts into smaller parts to understand your opportunities as a business owner—especially if you need to act quickly. Fundbox no longer accepts PPP applications, but SBA can help you find PPP lenders Until May 31, 2021.

484 billion US dollars, deconstructed

As detailed in the Wall Street Journal, the largest portion (more than US$300 billion) is directly used for bank payments to companies. Of this more than 300 billion U.S. dollars, 60 billion U.S. dollars is earmarked for small and medium-sized and community lenders to ensure that more funds eventually flow to eligible smallest and geographically dispersed small businesses. Since the funds are intended to increase funds for the PPP, the application process for these funds is the same as the application process for the original PPP funds. We can help.

The second largest portion of US$75 billion goes directly to hospitals to fund the equipment and supplies they need to fight the coronavirus.

Next, $60 billion is set aside for the Economic Injury Disaster Loan Program (EIDL). EIDL has existed for many years and aims to provide rapid emergency funds for small businesses affected by natural disasters. Given the severity of the economic slowdown caused by COVID-19, EIDL funds ran out shortly after the asylum-in-place order was announced. Fortunately, EIDL received more much-needed funds. Although EIDL is a loan program, each employee up to $1,000 is eligible for the advance payment forgiven by SBA. The EIDL advance payment should arrive within three days after submitting the application.You can apply directly through the following methods Small Business Administration.

The last $25 billion was earmarked for COVID-19 testing.