The $350 billion Paycheck Protection Program (PPP), created as part of the CARES Act to assist small businesses affected by the COVID-19 pandemic, has been fully committed. A total of 1,637,000 applications were submitted for relief under the PPP. Funding is also no longer available for small businesses claiming a hardship due to COVID-19 via the SBA Economic Injury Disaster Loan program. Businesses who already submitted an application for a PPP loan or an SBA Economic Injury Disaster Loan will continue to be processed on a first-come, first-served basis.
However, Congress is currently negotiating a new package which could provide up to $310 billion additional dollars in PPP funding. It is estimated that of that $310 billion, $60 billion will be set aside for rural and minority owned businesses, $75 billion for hospitals, and $25 billion for expanded testing. Another $60 billion would go toward the SBA’s Economic Injury Disaster Loan program. Businesses who have not yet submitted an application should gather application materials and have them readily available should new funding become available.
Additionally, The U.S. Chamber of Commerce Foundation has initiated the Save Small Business Fund. The Fund offers short-term relief to certain small employers by giving grants of $5,000.00. To qualify, a business 1) may only have 3-20 employees, 2) must be located in an economically vulnerable area, and 3) have been financially impacted by the COVID-19 pandemic. More information on eligibility and how to apply for these grants can be found at https://savesmallbusiness.com/.
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