Congress passed a bill approving a re-funding of the PPP and EIDL programs under the CARES Act on Thursday, April 23, and President Trump signed the bill on Friday, April 24, 2020. The SBA will open up its systems to accept new applications.
There will be overwhelming demand (as in the first round) and the ~$250 billion main pot of funding will likely be spoken for within days or even hours. Due to the stipulations of the second round of funding, an additional $60 billion in funds that can only be distributed via a specific subset of lenders (intended to reach a wider variety of businesses) will likely last a bit longer.
The package contains roughly $310 billion to replenish the Paycheck Protection Program (PPP), including $60 billion that must be routed through lenders that serve hard-to-reach or minority groups, an additional $10 billion for the EIDL grant program, as well as an additional $50 billion for the Small Business Administration’s disaster relief fund for disaster/economic injury loans, in addition to allowing agricultural/rural businesses access to these types of funds.
Womply has partnered with various trusted lenders to offer you the best possible rates on small business funding. Whether you need a term loan, a line of credit, or another type of small business capital, we can help! Click here to learn more.
Since there is such a huge demand for emergency funding from America’s small businesses, we are hopeful that congress will approve a third round of funding as well.
What does new PPP / EIDL funding mean for your business?
Economic Injury Disaster Loan (EIDL) grants:
The initial $10 billion EIDL grant funding ran out quick, so don’t wait to get your EIDL application submitted for $10K grant to help your small business weather this crazy financial storm. Even if you’ve applied for a PPP loan, you can still apply for an EIDL grant, and vice versa.
Also, even if you’re not sure whether your business qualifies, we urge you to apply for an EIDL grant. There are very few strings attached — even if you do not qualify for a larger loan, this $10,000 will be yours to keep so long as you meet basic eligibility requirements.
The application only takes a few minutes to complete. We strongly urge you to:
- Check to see if your business is eligible for an EIDL grant from the federal government. Review the criteria here — it includes having less than 500 employees, and not getting most of your income through certain activities, like gambling.
- Submit your application as soon as possible! These grants will go fast (AGAIN!).
Paycheck Protection Program (PPP) loans:
The initial $350 billion in PPP funding was quickly allocated to approximately 1.6 million American businesses, and the second round of funding will also run out extremely fast.
HOWEVER, if you haven’t completed your PPP loan application, we urge you do so with all possible dispatch. It’s important to get your application submitted ASAP because when your PPP loan is approved, you’re assigned an E-TRAN number that effectively holds that money in reserve for you and counts it as “spent.” If you don’t have an approved PPP application and an assigned E-TRAN number, you won’t get your money.
In the case that revisions are made to the current PPP loan application requiring you to reapply, we’ll be sure to let you know.
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Other SBA disaster loans:
The act includes an additional $50 billion in funding for SBA disaster relief loans, so even if you don’t get approved for a PPP loan or an EIDL grant, you may still qualify for an SBA disaster loan. Read more about available emergency funding options here.
Womply can help you get the small business funding that’s right for you
Womply has partnered with various trusted lenders to offer you the best possible rates on small business funding. Whether you need a term loan, a line of credit, or another type of small business capital, we can help!