By: Patrick Ungashick
To help our clients and other business owners and leaders respond to the unprecedented leadership disruptions caused by the coronavirus (COVID-19) outbreak, the team at NAVIX offers the following crisis management information series.
Responding to Coronavirus: PPP Funds Replenished – What You Need to Know
April 24, 2020 @ 12:00 PM
US federal lawmakers today passed legislation that replenishes the Payroll Protection Program (PPP) forgivable loan program, adding another $310 billion to the forgivable loan program created by the CARES Act in response to the coronavirus crisis. The first found of PPP funding, some $349 billion, was exhausted in 14 days as about 1.6 million US businesses rushed to secure a PPP loan.
Today’s legislation also restocks the SBA Economic Income Disaster Loan (EIDL) programs, adding $10 billion to the emergency grant program and $50 billion for disaster recovery loans. Both of those lending programs were fully exhausted, as US companies seek relief to help deal with the unprecedented challenges presented by the COVID-19 crisis.
If your company did not secure a PPP loan during the first round of funding, consider contacting your SBA-approved bank or other lending organization and completing an application as quickly as possible. Demand for the second round of funding is expected to be even greater than the first round.
If you did successfully complete a PPP loan and either have received your funds or are waiting for the funds to be released, be sure to study carefully the guidelines on the proper use of the funds and how to maximize loan forgiveness.
The following free resources can assist you with PPP and other relief programs available through the CARES Act:
- PPP 40-Frequently Asked Questions – free article
- How to Maximize Your PPP Funds – free article
- CARES Act 11-Point Executive Summary – free PDF download
The NAVIX team has helped hundreds of business owners prepare for exit. We have also helped countless owners and leaders deal with recessions, liquidity crises, and economic upheaval. Our experience and perspective enable us to guide our clients through difficult times, such as these.