More Funding for PPP/EIDL
Co-authored by Josh Lapierre, Tax Senior Manager
On April 23, Congress passed, and the President has signed, legislation providing another round of funding for the Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loans (“EIDL”). Both sources of funding dried up quickly last week, and the purpose of this legislation was primarily and simply to replenish them.
The bill provides $60 billion in new funding for the EIDL program (including $10 billion for emergency grants), and $310 billion for the PPP, with $60 billion of that amount specifically earmarked for small lenders. The remaining balance of the $484 billion price tag involves amounts unrelated to PPP/EIDL that are directed toward healthcare providers and COVID-19 testing.
Sources report that only 20% of applicants to date received funding before the cap was depleted. It remains unclear how successful new applicants will be in accessing this new funding, given the backlog of prior applicants that are in line ahead of them.
Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.