New Round of PPP Funding Approved
(April 23, 2020)
CLEVELAND, TN: By an overwhelming bipartisan recorded vote earlier today, the U.S. House of Representatives approved a new stimulus package, commonly called “Stimulus 3.5,” and forwarded the measure to the White House for signature by the president. The bill passed the Senate earlier in the week.
The legislation provides for an additional $484 billion to stave off the economic impact of the COVID-19 (coronavirus) pandemic. The bill is called “Stimulus 3.5“ simply because it does not create any new areas of funding, but rather provides additional funding for programs created in previous stimulus packages.
Most importantly, the legislation contains an additional $310 billion to fund the “Paycheck Protection Program“ (PPP) loans guaranteed by the Small Business Administration. The funds in this legislation are in addition to the $349 billion that was included in the earlier CARES Act. It is expected that the new funds will be available through your local bank within the next 24 hours or so.
Churches who sought funding under the original bill and were denied due to the program’s funds being exhausted, should contact their local bank immediately to potentially access this second round of funding. Just like the initial funding, it is expected that there will be a lot of demand for this new round of $310 billion of guaranteed loans that are potentially forgivable if certain criteria is met.
When the first $349 billion was made available, the money went to over 1.7 million small businesses, nonprofits, and churches. In less than 14 days from being made available, those loans were exhausted. It is interesting to note that the volume of loans approved by the SBA during that period of 14 days equaled the volume of loans that they normally approve in 14 years. The average loan during that time was approximately $206,000.
To access the PPP loans, you must go through your local SBA-designated bank or lender. Again, if the eligibility criteria is met, some, if not all, of the loan may be forgiven. Additional guidance on the forgiveness program is expected to be released in the coming days by the SBA.