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The federal government has OK'd another round of stimulus funding. It includes $310 billion for the Paycheck Protection Program and $60 billion for the Economic Injury Disaster Loan program.
The president signed into law on April 24 another round of stimulus funding that includes $310 billion for the Paycheck Protection Program and $60 billion for the Economic Injury Disaster Loan program, both of which are overseen by the U.S. Small Business Administration. Given how quickly the initial funding for these programs was depleted, we strongly encourage Westmoreland County businesses to not delay in applying.
Businesses can apply for PPP loans of up to 2.5 times the average monthly payroll costs of the previous calendar year, with a $10 million cap. The SBA will forgive these loans for recipients that keep all employees on the payroll for eight weeks and use the money for approved uses.
To ensure that more small businesses receive aid during this round of funding, Congress has specified that $30 billion is for community lenders, small banks and credit unions. Another $30 billion is earmarked for medium-sized banks and credit unions.
Applications are processed by existing SBA 7(a) lenders 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 in the program.
Click here for the SBA’s PPP loan page.
EIDL loans, including $10K emergency grant
Expanded by the CARES Act, the SBA’s Economic Injury Disaster Loan program provides working capital loans of up to $2 million at a rate of 3.75 percent for businesses and 2.75 percent for nonprofits. Terms of up to 30 years are available, and payments on COVID-19 EIDL loans are deferred for one year.
Eligible EIDL applicants can receive a $10,000 emergency grant within three days of application. There is no obligation to repay the grant, but if a PPP loan is secured, the $10,000 grant will be subtracted from the forgiveness amount. To view a U.S. Chamber of Commerce one-page PDF summary of the expanded EIDL program, click here.
Additionally, the SBA has provided us with the following PDF files:
Click here for the SBA’s EIDL application page.