Yesterday, the US Senate approved an additional $370 Billion in funding to be administered through the SBA. This will move to the House with a vote expected on Thursday. The President has already said that he will sign the bill when presented.
$310 Billion of this is earmarked for the Payroll Protection Program (PPP) Loan program which is great news for all of you that have not yet been approved for funding that need it for your business. This sets aside $60 Billion for small banks as follows:
- $30 billion is for loans by FDIC-insured banks and credit unions that have assets between $10 billion and $50 billion.
- An additional $30 billion is for lenders with less than $10 billion in assets. Those include community banks, credit unions, and community development financial institutions, which provide loans to low-income communities and to people who lack access to financing.
Another $50 billion will be added to the Emergency Injury Disaster Loan program if that is the best fit for your business needs.
We all expect that these additional PPP loan funds are expected to be exhausted extremely quickly as most banks have continued to take loan applications after the initial funds were exhausted in hopes that there would be another round of funding.
What this means to you is that you need to get into the queue at your bank or a new lender IMMEDIATELY if you have any hope of getting funding. Many who apply will be left out again due to overwhelming demand of this program and we cannot assume that a third round of funding would be approved.
So, If you haven’t yet applied, it is time to do so to establish your position in line as early as you can.