Yesterday the U.S. House of Representatives authorized $310 billion in additional funding for the Paycheck Protection Program (PPP), the U.S. Treasury administered loan program designed to keep employees on small company payrolls, by a vote of 388-5-1. Initial funding of $350 billion, created as part of the $2 trillion rescue package passed last month, ran out of funds last week. Today the President officially signed this legislation.
Companies that applied but did not receive funding in the first round should be in touch with their banks to ensure that paperwork is in order and ready to be processed as demand for these funds continues to be strong. We expect that lending will begin as soon as Monday and that the funds will not last long – opening discussion for a fifth relief package.
How to Apply for PPP
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders, as well as additional information and full terms can be found at www.sba.gov.