Congress Passes Additional Small Business Relief
Today, April 23, 2020 the US House of Representatives voted to re-infuse the Paycheck Protection Program (PPP) with $310 billion in additional funding. Banks will once again be accepting new PPP applications, possibly as soon as tomorrow, Friday April 24. But with businesses all over the United States applying for the same loan program, the money is expected to run out even more quickly this time around.
Do not delay: if you are interested in applying for this loan, talk to your banker TODAY!
If your lender isn’t offering the loan, or if you’re looking for a lender who’s familiar with this program and had good success with it during the last round, consider the Farm Bureau Bank. Visit www.farmbureaubank.com for more details.
This legislation also made agricultural entities eligible for Economic Injury Disaster Loans (EIDLs). In the original CARES Act, agricultural entities were incorrectly excluded from this loan program, which can offer an immediate advance of up to $10,000 in addition to millions more in a low-interest loan to cover operating and other costs. Ag entities can apply for this program through the Small Business Administration’s website.
Not yet familiar with PPP? Here's an overview of the program:
What is PPP and how does it work?
The PPP is a low interest rate loan, administered by local banks and lending institutions, that may be partially or fully forgiven by the Federal government. It is intended to be a stimulus and to provide funds for payroll and mortgage interest or rent and utilities to help businesses during this difficult time. The PPP is a 24-month loan at 1% with the first payment deferred for the first six months. Businesses will only owe money back the funds are used for anything other than payroll costs, mortgage, interests, rent, and utility payments over the eight weeks after receiving the loan.
Who is eligible?
All businesses with 500 or fewer employees that have been negatively impacted by COVID-19 between February 15, 2020 and June 30, 2020. Each business may only receive one PPP loan.
How much can be borrowed?
Businesses can borrow a maximum of 2.5 times their average monthly payroll over the prior 12 months. However, seasonal businesses will be for the payroll period between February 15, 2020 and June 30, 2020.
For more information about this and other relief programs available during the COVID-19 crisis, visit our COVID-19 Resources page.