Second Round of PPP Funding Starts Monday at 10:30am
On April 16, 2020, the $349 billion allocated to the Paycheck Protection Program (PPP) was exhausted. On April 24, 2020, President Trump signed the Paycheck Protection Program and Healthcare Enhancement Act (the Act). The Act is a $484 billion economic relief package which provides, among other things, $310 billion to re-fund the PPP and $60 billion for the Economic Injury Disaster Loan Program.
The Small Business Administration (SBA) has announced that it will start processing applications on Monday, April 27, at 10:30am (ET) for the re-funded PPP. Until then, lenders will not be able to submit applications through the SBA’s E-Tran system. The SBA has also advised lenders to resume processing loan applications that were previously submitted by eligible borrowers.
It is anticipated that these additional funds will be exhausted within a week, and possibly in as little as a few days. There were thousands of applications that were submitted to lenders by the time the first round of funds had been depleted. These applications will be processed quickly and will deplete a significant portion of the new funds. If you want to apply for a loan under the re-funded PPP, you should submit an application to your lender as soon as possible.
If you have any questions about implementing any of the relief provided for in the Act, or any other issues related to the COVID-19 pandemic, please do not hesitate to contact one of the attorneys at FGKS Law at 937-492-1271.
